RENO, Nev., July 21, 2010 (GLOBE NEWSWIRE) -- Encompass Holdings, Inc. (Pink Sheets:ECMHD), www.encompassholdings.com, reports that it has received the first tranche of its new funding package. Encompass has begun funding the initial requirements of its subsidiaries, Rotary Engines Technologies, Inc., (rotary engines) Aqua Xtremes, Inc., (XBoard personal watercraft) and Quadrant Data Systems, Inc. (N+2 rated data center).
Scott Webber, CEO of Encompass, stated, "Additional funding is in the pipeline and should be received over the next few weeks. These additional funds will allow us to meet the necessary milestones set in our 'use of proceeds' agreement that will trigger the total funding package. These new funds will be used to complete a number of those milestones which includes completing the applications for EPA and CARB certification for the RETI 407cc rotary engine used as the power plant for Aqua Xtremes' XBoard (a motorized personal watercraft), completing the assembly of 18 XBoards ready for distribution (most of the XBoard and engine components are currently in-house), and adding additional infrastructure for Quadrant's virtual computing and other initiatives."
Webber continued, "Funding for research and development is more difficult to obtain and comes at a much higher cost commensurate with start-up risks. As we move from being primarily an R&D company to one ready to begin producing several products, more funding options have become available to us. This new funding is being provided under terms and conditions that are more in line with standard debt and equity lender requirements which are much more favorable to Encompass than some of its past funding options."
In other news, Quadrant is progressing on two joint venture agreements that should be completed and announced shortly. Also, Encompass has begun the process of retaining a new corporate accounting firm. "We have finally been able to obtain all of our corporate records from our previous accountant. Our new accountants, along with our new auditors, will begin working to complete all of our past financial reporting requirements in order to regain our standing as a 'fully reporting' public company as soon as possible," stated Webber.
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Forward-looking statements in this news release are made under the "Safe Harbor'' provisions of the Private Securities Litigation Reform Act of 1995. Certain important factors could cause results to differ materially from those anticipated by the forward-looking statements, including the impact of changed economic or business conditions, competition, the success of existing and new product releases and other risk factors inherent in product development and other factors discussed from time to time in reports filed by the company with the Securities and Exchange Commission.