SOURCE: American Power Group Corporation
LYNNFIELD, MA--(Marketwired - Dec 18, 2013) - 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 agreed to extend the maturity of APG's credit facility from December 31, 2013 to April 1, 2015. In addition, Iowa State Bank agreed to increase APG's maximum borrowing limit to $2.5 million and increase their collateral base to include 50% of certain machinery and equipment. 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 later this week.
Chuck Coppa, American Power Group Corporation's Chief Financial Officer stated, "We appreciate the continued support and cooperation of Iowa State Bank as our primary secured lender over the past four years. The increase in our working capital line maximum coupled with the new inclusion of 50% of certain machinery and equipment in our collateral base provides us access to approximately $500,000 of additional working capital not previously available."
Mr. Coppa added, "Major corporations around the world are realizing the beneficial effects that our reliable dual fuel stationary and vehicular third-generation designs can have on their sustainability goals as well as their bottom lines. The extension of this credit facility will allow us to focus on closing bids, developing strategic partnerships, and ensure continued evolution of our technology into new markets."
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 80% 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.