FORT WORTH, Texas, Oct. 6, 2004 (PRIMEZONE) -- Catalyst Lighting Group, Inc. (OTCBB:CYSL) announced today that it completed a $5 million financing with Laurus Master Fund, Ltd. ("Laurus Funds"), a New York City based institutional fund, that specializes in providing financing to growing, small and micro-capitalization companies.
The financing consists of two facilities, a $3 million line of credit, which replaces its existing senior secured lending facilities and a $2 million convertible term note. This financing is secured by the existing assets of Catalyst and bears interest at the annual rate of prime plus 2%, subject to certain adjustments. The outstanding balances on the line of credit and the term note may be converted into Catalyst common stock from time to time.
Proceeds from the $2 million convertible note, which will be held in a restricted account, are to be used to acquire additional business entities targeted by Catalyst or fund joint ventures or other similar business plans.
"The commitment of Laurus Funds is a tremendous opportunity to advance some of our growth objectives," said Dennis Depenbusch, Chief Executive Officer and Chairman of Catalyst. "We are in an enhanced position for continued expansion, both through acquisitions and via internal company growth. We look forward to a long and mutually rewarding relationship with Laurus."
About Catalyst Lighting Group, Inc.
Catalyst Lighting Group is headquartered in Fort Worth, Texas. Through its sole subsidiary, Whitco Company, LP, Catalyst manufactures and markets lighting poles for the commercial and industrial markets. The company sells and distributes its products through a network of more than 70 agents stationed throughout the United States. More information about Catalyst Lighting Group, Inc. may be found on the company's Web site, www.catalystlighting.com.
Certain of the above statements contained in this press release contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Actual results, events and circumstances (including future performance, results and trends) could differ materially from those set forth in such statements due to various factors, risks and uncertainties, including but not limited to, risks associated with Catalyst Lighting Group, Inc.'s future growth and operating results, the uncertainty of market acceptance of the company's products, technological change, competitive factors and general economic conditions. Catalyst Lighting Group, Inc. has no duty and undertakes no obligation to update such statement.