BLAINE, Wash., Aug. 3, 2012 (GLOBE NEWSWIRE) -- Hollund Industrial Marine, Inc. (Pink Sheets:HIMR) ("Hollund" or the "Company") announced today that the Company has been in talks with Investment Banking groups in an effort to secure non-dilutive multi-million dollar financing for projects emerging in South America.
"Due to the aggressive push our South American Development Team has made in the region, Hollund is quickly coming up on possibly securing concessions that will require significant project financing," stated Peter Meier, President of Hollund. "However, the financing vehicles we are exploring for the South American projects are outside of the routine transactions that micro-cap companies generally pursue. Given the nature of our business, the political connections and international relationships we are continuously enriching, attempting to raise project capital by way of debt conversions, 504's, Reg A's, or other sole securities based transactions, would make absolutely no sense for projects of this magnitude."
Currently the company and its development consultants are in talks with several investment banking firms who have shown a genuine interest in assisting with the project financing. People close to the company indicate that Hollund's management may actually be close to securing a deal with one of these firms. The amount of the initial round of funding is unclear but sources say, based on the underlying South American concessions, financing should be between $5 million and $8 million dollars.
Mr. Meier indicated that much of the interest in funding the concession projects is rooted in the dynamic synergies created by the possible three way relationship between Hollund, the patented underwater resource technology and one of the most prominent woods product and distribution sources in the country. "As a stand alone concessions company, we can do fairly well," continued Meier, "As a concessions company exclusively marketing, managing and operating an underwater resource technology, our value proposition just increased. As a concessions company, with an exclusive technology license, strategically aligned with a global woods product and distribution company, our potential revenue and profitability multiplies significantly."
With whichever investment bank Hollund decides on, Management expects that any financing solution utilized will likely be outside the purview of exclusively stock related transactions; thus limiting unwarranted dilution. Given the current cleanup efforts of the company – which has set a course to reduce the Issued and Outstanding common share count by at least 3.5 Billion shares – project financing should be secured under very favorable conditions. "We expect to finalize our arrangements with the appropriate investment banking firm once LOI's are in place with both of our strategic initiatives; validating the grounds on which we should secure our first five to eight million dollars in concession project financing," concluded Meier.
About Hollund Industrial Marine, Inc.
Headquartered in Blaine, WA, Hollund Industrial Marine Inc. (Pink Sheets:HIMR) seeks to align the interests of businesses, communities, utilities and governments by offering an integrated business model for underwater forest management. Hollund's model – including resource and needs assessment, permitting, environmental and project planning, logging, milling, product branding and sales adds value for our shareholders, our partners and reservoir based communities.
This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (the "ACT"). In particular, when used in the preceding discussion, the words "estimated," "believe," "optimistic," "expect," and similar conditional expressions are intended to identify forward-looking statements within the meaning of the ACT and are subject to risks and uncertainties, and actual results could differ materially from those expressed in forward-looking statements. Such risks and uncertainties include, but are not limited to, unfavorable market conditions, increased competition, limited working capital, and failure to implement business strategies, actions by regulatory agencies, and other risks.
For investor relations,
Hollund Industrial Marine, Inc.
ir@hollundindustrial.com
SOURCE: Hollund Industrial Marine, Inc.
CONTACT: info@hollundindustrial.com
This information was brought to you by Cision http://www.cisionwire.com
http://www.cisionwire.com/hollund-industrial-marine--inc/r/hollund-industrial-marine-explores-investment-bank-prospects-to-secure-up-to--8-million-in-project-f,c9289144