HERNDON, Va., June 21, 2018 (GLOBE NEWSWIRE) -- Free Flow, Inc. (OTCPINK:FFLO) announces that its wholly-owned subsidiary, Accurate Auto Parts, Inc. (“AAP”), signed a Commercial Purchase Agreement (the “Agreement”) with CCC Real Estate Holdings, LLC. The Agreement calls for the purchase of 19.39 acres of land, with all improvements thereon, located in the City/County of King George, Virginia, addressed as 6269 Caledon Road, King George, VA-22485 (the “Property”) for a total purchase price of $700,000.00. AAP had leased the Property for 26 years. Purchasing the Property allows FFLO to move forward with its expansion plan, now owning the property instead of just leasing it.
Funding for the purchase will be in the form of a commercial bank loan. AAP has been pre-qualified by Evolve Bank & Trust to borrow $1,046,000. The proposed loan will be for a term of 25 years and will accrue interest at an annual rate of WSJP + 2.25%. The remaining funds will be used to build inventory and improvements.
The Property is currently zoned as a recycling facility. FFLO’s expansion plan includes the construction of a warehouse on the Property so that the Company can grow its auto parts business. FFLO retained an architect to design the warehouse.
In addition, FFLO has conducted a feasibility study to set up a plant to extract crude oil from shredded tires and refine it at the property. A new subsidiary will be formed for this operation.
FFLO has incorporated another subsidiary named Citi Autos, Corp. (“Citi Autos”) and will apply for a used auto dealer license to sell used autos. Citi Autos plans to re-furbish automobiles primarily for export at this property.
FFLO expects $18 million in total revenues with pre-tax net profits of $7,000,000 by the year 2022. The following table depicts our year-by-year projected income from 2018 through 2022.
| Free Flow, Inc. and subsidiaries | |||||||||||||||||
| Projected Income Statement | |||||||||||||||||
| 2018 | 2019 | 2020 | 2021 | 2022 | Total | ||||||||||||
| Revenues: | |||||||||||||||||
| Total Revenues | $340,000 | $3,316,722 | $3,699,259 | $5,128,956 | $6,507,633 | $18,992,571 | |||||||||||
| Cost of Goods Sold | |||||||||||||||||
| Total Cost of Goods Sold | $66,000 | $1,161,959 | $1,272,703 | $1,535,507 | $1,798,311 | $5,834,479 | |||||||||||
| Gross Profit on Sales | |||||||||||||||||
| Total Gross Profit on Sales | $274,000 | $2,154,763 | $2,426,557 | $3,593,449 | $4,709,322 | $13,158,092 | |||||||||||
| Operating Expenses - G & A | |||||||||||||||||
| Total Operating Expenses - G & A | $159,000 | $1,107,733 | $1,127,770 | $1,594,229 | $2,066,208 | $6,054,939 | |||||||||||
| Net Profits before Income Tax | |||||||||||||||||
| Total Net Profits before Income Tax | $115,000 | $1,047,031 | $1,298,787 | $1,999,220 | $2,643,115 | $7,103,152 | |||||||||||
Disclaimer
For further details, visit website at www.FreeFlowPLC.com.
For further information about this release, contact Mr. Sabir Saleem, Free Flow, Inc. 703-789-3344, www.FreeFlowPLC.com.
ABOUT FREE FLOW, INC.
Free Flow, Inc. (FLLO) is a Delaware company that creates and acquires operating subsidiaries with the goal of manufacturing and selling products and services. Through its current subsidiaries, Accurate Auto Parts, Inc. [formerly, JK Sales Corp.], Motor & Metals, Inc., and Citi Autos, Corp. the Company provides OEM recycled auto parts and supplies from a warehousing and shipping facility on its 19+ acre facility in King George, Virginia, USA. Every year approximately 11,000,0000 cars are scrapped and end up in salvage yards for reprocessing. FFLO is committed to providing the sales of recycled auto parts and supplies, helping to reduce the carbon footprint resulting from the production of new parts and steel products.
Safe Harbor Statement:
This press release may include predictions, estimates, opinions or statements that might be considered "forward-looking" under the provisions of the Private Securities Litigation Reform Act of 1995. Such statements generally can be identified by phrases such as the Company or its management "believes," "expects," "anticipates," "foresees," "forecasts," "estimates," or other, similar words or phrases.
Contact:
Sabir Saleem,
Free Flow, Inc
703-789-3344
A photo accompanying this announcement is available at http://www.globenewswire.com/NewsRoom/AttachmentNg/a1027777-aecd-4df4-beff-96be4c6e72d9