RALEIGH, N.C., April 5, 2004 (PRIMEZONE) -- HydroFlo, Inc. (OTCBB:HYRF) today announced that the Company has agreed to an equity financing commitment with Compass Capital Group, a Wall Street based investment banking firm, to fund up to $5 million. The first round of financing is expected to be received in a matter of days and is expected to allow HydroFlo, Inc. to expand the business of its operating subsidiary, HydroFlo Water Treatment, Inc.
The Company plans to use the financing to gain additional market share for its subsidiary in the water treatment industry, including the opportunity to take advantage of $20 billion in U.S. federal grants that are being made available to upgrade the nation's water infrastructure.
Dennis L. Mast, CEO of HydroFlo Inc., stated, "The tremendous opportunities presented in the growing water treatment industry give even greater credence to HydroFlo Inc.'s focus on investing in this industry. We plan to continue to identify opportunities to acquire additional portfolio investment companies in order to build shareholder value and encourage the growth of HydroFlo, Inc. as an investment fund. The Company, with direction from Compass Capital and its newly appointed independent Board of Directors, has already identified a number of attractive acquisition candidates and looks forward to building the value of its investment portfolio through the acquisition of companies with proven track records, sustainable cash flow, and that, with the proper investment capital, are positioned for long-term growth."
According to the federal government, communities are currently investing approximately $10 billion a year in wastewater infrastructure. The U.S. wastewater infrastructure includes 16,000 publicly owned wastewater treatment plants, 100,000 major pumping stations, 600,000 miles of sanitary sewers, and 200,000 miles of storm sewers. Federal, state, and local investment in the U.S national wastewater infrastructure has been over $250 billion since the enactment of the Clean Water Act in 1972. Industries such as agriculture, fishing, manufacturing, and tourism that contribute over $300 billion to our economy each year rely significantly on clean water.
About the Company
HydroFlo, Inc. (www.hydroflo.us) is a Business Development Company, as defined by the Investment Act of 1940. Headquartered in Raleigh, North Carolina, HydroFlo 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 (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. The company also provides a full range of related services to companies and municipalities to treat their wastewater at the treatment plant by the use of the energy efficient aeration systems in treatment lagoons.
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.