SOURCE: Cargo Connection Logistics Holding, Inc.

November 30, 2007 08:30 ET

Cargo Connection Logistics Holding, Inc. Enters Into $3 Million Factoring Agreement With Wells Fargo Business Credit

Company Provides Loan to Fleet Global Services and Resolves Dispute With Miami Landlord

INWOOD, NY--(Marketwire - November 30, 2007) - Cargo Connection Logistics Holding, Inc. (OTCBB: CRGO) (BERLIN: CD6) (FRANKFURT: CD6) (FRANKFURT: 217026) today announced several developments that it expects should have a positive impact on the Company.

The Company has entered into an account transfer agreement with WelIs Fargo Business Credit ("WFBC") pursuant to which WFBC will serve as a factor to the Company's subsidiary, Cargo Connection Logistics Corp. ("Cargo Connection") by purchasing up to $3 million of Cargo Connection's accounts receivable. Cargo Connection also entered into a buyout agreement with WFBC and its previous factor, Accord Financial, Inc., pursuant to which WFBC succeeded to Accord Financials' security interest.

"We expect that this new factoring agreement, which increases our factoring capacity, will save the Company a significant amount of money and provide a bigger base for customer expansion," said Scott Goodman, CFO & COO of Cargo Connection Logistics Holding, Inc. "It is further evidence of our continuing efforts to create a more stable financial base to help achieve our short- and long-term goals."

The Company also said it has loaned Fleet Global Services, Inc. ("Fleet") $300,000 and has received from Fleet a one-year promissory note bearing an annual interest rate of 11 percent. The Company is continuing to work toward finalizing an acquisition of Fleet pursuant to a previously announced letter agreement (the "Letter Agreement"). According to the terms of the Letter Agreement, upon closing the Company would be required to pay $1 million in cash, issue 270 million shares of restricted common stock and issue additional shares valued at 10% of the EBITDA of the Company's new Fleet division for a two-year period. The Company expects that amount of the Note would be applied toward the cash portion of the purchase price.

The Company expects that Fleet, a non-asset based carrier company which it believes was considered to be the cornerstone of Fulmer Logistics' Carrier Division, of which Fleet was once a subsidiary, will add up to approximately $25 million or more in revenue to Cargo Connection. The Company expects that when the acquisition is completed, of which no assurance can be given, the combined business would have anticipated annual revenues in excess of $50 million in 2008. In addition, the Company expects synergies that will be accomplished through the addition of Fleet will favorably impact the Company's operating profitability.

Additionally, the Company said it has entered into an agreement resolving a dispute with the landlord of its Miami facility, AMB HTD Beacon Centre, LLC.

"We anticipate that each of these developments will have positive impact on the growth and development of the Company and further enhance shareholder value," said Goodman. "We're working very hard to secure additional financing and are hoping to close the Fleet acquisition as soon as practical."

About Cargo Connection Logistics Holding, Inc.

The Company, through its subsidiaries Cargo Connection Logistics Corp. and Cargo Connection Logistics - International, Inc., is a leader in world trade logistics. The Company headquarters is in Inwood, NY, and it also has offices in Atlanta, GA; Charlotte, NC; Chicago, IL; Columbus, OH; Miami, FL; New York, NY; Pittsburgh, PA.; and San Jose, CA. Headquartered adjacent to JFK International Airport, the Company is a transportation logistics provider for shipments imported into and exported out of the United States, with service areas throughout the United States and North America. The Company currently provides a comprehensive variety of transportation and warehouse capacity services to shippers throughout the nation. It also operates a bonded General Order warehouse in New York and Container Freight Station operations, which are specifically designed to handle internationally arriving freight for major retail suppliers through its facilities in Florida, Georgia, Illinois, New York and Ohio.

Cargo Connection Logistics' website is

Future-Looking Statements Safe Harbor

The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for forward-looking statements. Certain of the statements contained herein, which are not historical facts, are forward-looking statements with respect to events, the occurrence of which involve risks and uncertainties. These forward-looking statements may be impacted, either positively or negatively, by various factors. Information concerning potential factors that could affect the Company is detailed from time to time in the Company's reports filed with the Securities and Exchange Commission, including, without limitation:

--  the Company's ability to increase its revenues, including by obtaining
    contacts with foreign shippers and by acquisition of competing businesses
    such as Fleet Global Services, Inc.;
--  the Company's financial condition, including its ability to continue
    as a going concern;
--  the Company's ability to operate in compliance with the terms of its
    financing facilities (particularly the financial covenants);
--  the Company's ability to maintain adequate liquidity and produce
    sufficient cash flow to meet the Company's capital expenditure plans;
--  the number and magnitude of customers;
--  changes in, or the failure to comply with, government and regulatory
--  the Company's ability to obtain regulatory approvals and to maintain
    approvals previously granted;
--  uncertainty relating to economic conditions generally and particularly
    affecting the markets in which the Company operates;
--  the effect of the Company being in default on its indebtedness;
--  the Company's ability to raise additional capital, including to the
    extent necessary to consummate its acquisition of Fleet Global Services,
--  the Company's reliance on key personnel and independent agents;
--  the Company's vulnerability to economic and industry conditions;
--  changes in the Company's business strategy, development plans or cost
    savings plans;
--  the Company's ability to complete acquisitions or divestitures and to
    integrate any business or operation acquired;
--  the Company's ability to enter into strategic alliances or other
    business relationships;
--  the Company's ability to overcome significant operating losses;
--  the frequency and severity of accidents, particularly involving the
    Company's trucking operations;
--  the Company's ability to reduce costs;
--  technological developments and changes in the industry;
--  the Company's ability to develop products and services and to
    penetrate existing and new markets, and
--  changes in the competitive environment in which the Company operates.

Contact Information

  • Contact:
    Peter Nasca
    Peter Nasca Associates, Inc.
    954-473-0677 Ft. Lauderdale
    312-527-1044 Chicago