SOURCE: American Power Group Corporation

American Power Group Corporation

November 03, 2014 09:00 ET

American Power Group Corporation Announces Expansion and Extension of Its Primary Credit Facility With Iowa State Bank to 2021

$2.7 Million to Be Amortized Over Seven Years; New $500,000 Working Capital Line Added

LYNNFIELD, MA--(Marketwired - Nov 3, 2014) - American Power Group Corporation (OTCQB: APGI) today announced that its subsidiary, American Power Group, Inc.'s primary lender, Iowa State Bank, an Algona, Iowa institution, has extended the term of the Company's primary credit facility through 2021. Iowa State Bank has agreed to convert the Company's outstanding balance of approximately $2.7 million into a seven-year term loan with monthly payments starting in January 2015 and provide a new $500,000 secured working capital line with an initial maturity of January 2016. Specific details of this transaction can be found in the Company's Form 8-K, which will be filed with the Securities and Exchange Commission within the next few days.

Chuck Coppa, American Power Group's Chief Financial Officer, stated, "The expansion and extension of our primary credit facility through 2021 clearly demonstrates Iowa State Bank's continued support of our business plan and strategic direction. The implementation of a new working capital line provides us access to $500,000 of additional working capital not previously available."

Lyle Jensen, American Power Group's CEO, commented, "Being able to move a significant amount of our debt from short-term to long-term coupled with a new working capital line of credit are critical pieces of our business model in supporting the planned CY 2015/2016 growth previously discussed in our investor conference calls and at the last two Annual Meetings. We are seeing an increase in the number of new customers being booked in the United States and around the world, which combined with the increasing number of follow-on orders from early-adopter customers, positions us well as we enter fiscal 2015. We greatly appreciate Iowa State Bank's continued support and cooperation in helping us become a leader in an alternative fuel market that is grounded by our proven economics and product performance reliability."

About American Power Group Corporation
American Power Group's alternative energy subsidiary, American Power Group, Inc., provides a cost-effective patented Turbocharged Natural Gas® conversion technology for vehicular, stationary and off-road mobile diesel engines. American Power Group's dual fuel technology is a unique non-invasive energy enhancement system that converts existing diesel engines into more efficient and environmentally friendly engines that have the flexibility to run on: (1) diesel fuel and liquefied natural gas; (2) diesel fuel and compressed natural gas; (3) diesel fuel and pipeline or well-head gas; and (4) diesel fuel and bio-methane, with the flexibility to return to 100% diesel fuel operation at any time. The proprietary technology seamlessly displaces up to 75% of the normal diesel fuel consumption with the average displacement ranging from 40% to 65%. The energized fuel balance is maintained with a proprietary read-only electronic controller system ensuring the engines operate at original equipment manufacturers' specified temperatures and pressures. Installation on a wide variety of engine models and end-market applications require no engine modifications unlike the more expensive invasive fuel-injected systems in the market. See additional information at: www.americanpowergroupinc.com.

Caution Regarding Forward-Looking Statements and Opinions
With the exception of the historical information contained in this release, the matters described herein contain forward-looking statements and opinions, including, but not limited to, statements relating to new markets, development and introduction of new products, and financial and operating projections. These forward-looking statements and opinions are neither promises nor guarantees, but involve risk and uncertainties that may individually or mutually impact the matters herein, and cause actual results, events and performance to differ materially from such forward-looking statements and opinions. These risk factors include, but are not limited to, the fact that our dual fuel conversion business has lost money in the last five consecutive fiscal years, the risk that we may require additional financing to grow our business, the fact that we rely on third parties to manufacture, distribute and install our products, we may encounter difficulties or delays in developing or introducing new products and keeping them on the market, we may encounter lack of product demand and market acceptance for current and future products, we may encounter adverse events economic conditions, we operate in a competitive market and may experience pricing and other competitive pressures, we are dependent on governmental regulations with respect to emissions, including whether EPA approval will be obtained for future products and additional applications, the risk that we may not be able to protect our intellectual property rights, factors affecting the Company's future income and resulting ability to utilize its NOLs, the fact that our stock is thinly traded and our stock price may be volatile, the fact that we have preferred stock outstanding with substantial preferences over our common stock, the fact that the conversion of the preferred stock and the exercise of stock options and warrants will cause dilution to our shareholders, the fact that we incur substantial costs to operate as a public reporting company and other factors that are detailed from time to time in the Company's SEC reports, including the report on Form 10-K for the year ended September 30, 2013 and the Company's quarterly reports on Form 10-Q. Readers are cautioned not to place undue reliance on these forward-looking statements and opinions, which speak only as of the date hereof. The Company undertakes no obligation to release publicly the result of any revisions to these forward-looking statements and opinions that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

Contact Information

  • Media Information Contact:
    Kim Doran
    Quixote Group
    336-413-1872
    Email Contact

    Investor Relations Contacts:
    Chuck Coppa
    CFO
    American Power Group Corporation
    781-224-2411
    Email Contact

    Mike Porter
    Porter, LeVay, & Rose, Inc.
    212-564-4700
    Email Contact