RALEIGH, N.C., April 26, 2004 (PRIMEZONE) -- HydroFlo, Inc. (OTCBB:HYRF) announced today that Compass Capital Group, a New York-based private investment firm, has secured an additional financial commitment of up to $10 million with Yanzu Inc.
Terms of the financing involve restricted shares to be purchased at prices of up to $5.00 per share, depending on the current share price of HydroFlo, Inc. common stock. This stock will be Rule 144 shares with a one-year restriction and no registration rights. Once Yanzu Inc. has purchased $1 million of the 144 restricted stock, it will be granted a seat on the HydroFlo Board of Directors acquisition committee.
"Compass Capital has been instrumental in raising funds needed during an important phase of company growth. HydroFlo has numerous potential acquisitions in various stages of development, and we continue to diversify our holdings as Compass Capital moves forward to raise capital for current and planned acquisitions. We look forward to putting these funds to use and increasing shareholder value," stated Dennis L. Mast, CEO of HydroFlo, Inc.
About the Company
HydroFlo, Inc. (http://www.hydroflo.us) is a Business Development Company, as defined by the Investment Act of 1940. Headquartered in Raleigh, North Carolina, HydroFlo's core focus is to seek out synergistic acquisitions that will provide capital appreciation and income from its portfolio companies. Its first portfolio investment company, HydroFlo Water Treatment (http://www.hydroflo-inc.com) is in the business of providing aeration equipment used for the pre-treatment of wastewater. Using the patented Pressure Line Up-Stream or PLUS pre-treatment system, HydroFlo Water Treatment provides customers a treatment process at their pumping stations, prior to the wastewater reaching a treatment plant.
Statements regarding financial matters in this press release other than historical facts are "forward-looking statements" within the meaning of section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and as that term is defined in the Private Securities Litigation Reform Act of 1995. The company intends that such statements about the Company's future expectations, including future revenues and earnings, and all other forward-looking statements be subject to the safe harbors created thereby. Since these statements (future operational results and sales) involve risks and uncertainties and are subject to change at any time, the Company's actual results may differ materially from expected results.