DEERFIELD BEACH, FL, September 16, 2010 – South Florida based Capstone Industries, Inc., a wholly owned subsidiary of CHDT Corporation (CHDO.OB) announced today that is has entered into a new agreement with Sterling Bank and its’ newly formed factoring division, Sterling Factors Corporation.
For the past two years, Capstone Industries has had an asset-based line of credit for up to $2,000,000 with Sterling Bank. This type of instrument has helped the company finance many of its’ orders but comes with limitations such as concentration levels with retailers. The new banking facility is designed to allow for continued growth with no credit limits.
“We are pleased Sterling Bank created this new banking division. In today’s tight credit environment, the traditional banking arrangement with its’ financial restrictions can stifle a company’s growth, in particular a small company. The cost of turning away business by not being able to extend payment terms because the banks credit limit has been reached can be tremendous,” said Gerry McClinton, CFO of CHDT Corporation. “We sell to the largest and most financially stable retailers in the U.S., which requires a financial facility that provides credit based on our customers solid credit worthiness and allows us to substantially grow revenue without limitations. Additionally, the terms of the new agreement are competitively priced when compared to traditional banking costs. Our new agreement meets all of these requirements and will help to support our working capital needs,” Mr. McClinton said.
About Capstone Industries, Inc.
For more than a decade, the South Florida based Company, Capstone Industries, has specialized in the design, production, and distribution of consumer products as a supplier to major retail operations throughout the USA. Capstone Industries is committed to the development and distribution of unique and inventive products to a variety of channels including bookstore chains, convenience stores, drug & grocery, electronics, hardware, home improvement, internet, mail order, mass market, office supply, specialty, and warehouse clubs.
About CHDT Corporation
CHDT Corporation (www.chdtcorp.com) is a public holding Company that engages, through its wholly owned subsidiaries, in the development, manufacturing, logistics, and distribution of consumer products to retailers and wholesalers throughout North America. See www.chdtcorp.com for more information about the Company and also www.capstoneindustries.com for information on our current product offerings. Reference of URLs in this press release does not incorporate said URLs or any of their contents in this press release.
FORWARD-LOOKING STATEMENTS: This press release, including the financial information that follows, contains “forward-looking statements” as that term is defined in the Private Securities Litigation Reform Act of 1995, as amended. These statements are based on the Company’s and its subsidiaries’ current expectations and involve risks and uncertainties, which may cause results to differ materially from those set forth in the statements. CHDT undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events, or otherwise. Forward-looking statements in this press release and risks associated with any investment in CHDT, which is a small business concern and a “penny stock Company” and, as such, a highly risky investment suitable for only those who can afford to lose such investment, should be evaluated together with the many uncertainties that affect CHDT’s business, particularly those mentioned in the cautionary statements in current and future CHDT’s SEC Filings.
SOURCE: CHDT Corporation
Contact: Jill Mohler
(954) 252-3440, ext 313
[email protected]
