RALEIGH, N.C., July 9, 2004 (PRIMEZONE) -- HydroFlo, Inc. (OTCBB:HYRF) announced today that the Company has received $225,000 of a $10 million commitment from Yanzu Inc. 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.
HydroFlo, Inc. sold 450,000 restricted shares at .50 per share for gross proceeds of $225,000. All shares will be restricted for one year from the date of purchase and will have no registration rights until that time has expired. The conversion was done at a 525% premium to yesterday's closing price. The $225,000.00 funding is planned to be primarily used to expand the technology subsidiary recently created by HydroFlo Inc.
Dennis Mast, Chief Executive Officer of HydroFlo, Inc., stated, "This long term financial commitment, at a significant premium to our current stock price, shows tremendous confidence in our present and future portfolio companies as well as management's ability to execute their business plan. Yanzu Inc. is very impressed with HydroFlo's expected acquisition of proprietary intellectual capital from academic institutions and other research centers through the relationship HydroFlo has developed with UTEK Corporation. Through strategic alliance agreements, UTEK assists technology companies in enhancing their new product pipeline with the acquisition of proprietary intellectual capital from universities and laboratory research centers.
"Additional technologies will only add to the diversity and versatility of HydroFlo's portfolio investments and are anticipated to bring greater value to the Company's shareholders," concluded Mr. Mast.
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.