SOURCE: EGPI Firecreek, Inc.

April 08, 2015 08:30 ET

EGPI Firecreek, Inc. Signs LOI to Acquire Empath Towers LLC

EGPI Firecreek to Initiate New Business Model as a Holding Company

SCOTTSDALE, AZ--(Marketwired - Apr 8, 2015) - EGPI Firecreek, Inc. (OTC PINK: EFIR) (the "Company") is pleased to announce the signing of a Letter of Intent to acquire broadband and cellular tower industry experts Empath Towers LLC. (referred to as "Empath").

Founded in August, 2013, Empath Towers is a contract staffing business specializing in the broadband cable and cellular tower industry. In 2014, Empath generated revenues of $500,000 and projects to generate approximately $1.3 million in revenues for 2015.

While most work through Empath is subcontracted, there are opportunities for growth through internal crews which will then require capital expenditures (vehicle lease, trailer and tools). Growth is based on forecasted demand but not paid until and unless working. Thus, receivables build very quickly to support and cover cash usage, minimizing cash flow re-investment risk.

Empath Towers currently has customer contracts in place with the largest tower owners in the U.S., as well as several of the largest public and private general contractors and systems integrators serving the cell tower industry.

Empath is also quickly gaining a reputation as a high quality, high performance organization that consistently meets and exceeds customer expectations. This is resulting in increased requests and demands for services from Empath.

Empath is currently in discussions with several additional major system integrators regarding Empath's abilities in providing tower services. Further, as Empath Towers grows, they will be able to secure work directly from the carriers, which will increase billable revenues per project.

Growth Strategies include the expansion of line and antennae work, tower modifications in partnership with construction companies (up to 90% of all towers in the US are structurally inadequate), international line and antennae projects, tower painting and site acquisitions. 

The market for Empath Tower services is significant and has been showing continued exponential growth. According to a 2013 industry report by Information Age Economics mobile broadband investments will average between $34-$36 billion per year from 2014 to 2017 ($1.2 Trillion cumulative) and will increase GDP in 2017 by 1.6% - 2.2% while generating up to 1.3 million new jobs.

Over 28,000 of these jobs will be directly attributable to the investment and build-out of wireless broadband infrastructures, which is driven by market demand for 100% wireless broadband availability, and driven by market and consumer demand for services that are continuously being developed and are fully dependent on this technology.

Mr. Fred Sussman, Empath Towers LLC, CEO, is a proven entrepreneur and business developer who has developed several businesses from concept to operation and sale. He is a hands-on manager with a history of building and leading strong management teams and comes with extensive experience in staffing, service and technology industry companies.

Dennis Alexander, EGPI's CEO, stated, "We are extremely pleased to announce the new strategic direction that EGPI Firecreek is moving towards as a Holding Corporation. The acquisition of Empath Towers will be an intricate part of the development of our company as a well-diversified operation capable of generating revenue streams in multiple high growth industries." He also stated, "We are now working diligently on becoming current with all of our SEC listing requirements and plan to move expeditiously towards the completion of this acquisition."

Fred Sussman, Empath Towers LLC, CEO, stated, "We look forward to being a part of the EGPI Firecreek organization. Our relationship with EGPI Firecreek via this acquisition will help to provide us the proper capitalization needed to grow revenues both organically and through acquisitions. This essentially will allow us to build Empath into a leader in the cell tower services industry, as consumer demand for mobile services continues to show insatiable growth. We are confident that Empath will soon be positioned to be an integral part of satisfying that demand."

This Letter of Intent is set to specific terms and conditions which both parties have agreed to in principle. Both parties desire to move in an expeditious manner in order to facilitate a Definitive Agreement and will allocate the time necessary in order to complete this acquisition in a timely manner. The Company expects to complete this transaction within the next 60 days. Completion is subject to the satisfaction or waiver of a number of conditions, including a satisfactory resolution of the creditors for EGPI Firecreek, an approval by the Board of Directors and receipt of all necessary requisite third party approvals.

About EGPI Firecreek, Inc.

EGPI Firecreek, Inc.'s business and acquisition strategy is focused in 2015 on building a diversified strategy initiated by commencement of activities in the Broadband sector, including line, antenna, and tower modification. The Company, through its wholly owned subsidiary Energy Producers, Inc., historically is focused on oil and gas with emphasis on acquiring existing fields with proven reserves or by the rehabilitation and enhancement of oilfields with potentially strong attributes for revenue and asset growth. The Company plans on continuing to seek out additional revenue producing businesses with strong growth potential to acquire as they look to diversify their interests over a broad base. 

Safe Harbor
This release contains statements that constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements appear in a number of places in this release and include all statements that are not statements of historical fact regarding the intent, belief or current expectations of EGPI Firecreek, Inc., its directors or its officers with respect to, among other things: (i) financing plans; (ii) trends affecting its financial condition or results of operations; (iii) growth strategy and operating strategy. The words "may," "would," "will," "expect," "estimate," "can," "believe," "potential" and similar expressions and variations thereof are intended to identify forward-looking statements. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, many of which are beyond EGPI Firecreek, Inc.'s ability to control, and that actual results may differ materially from those projected in the forward-looking statements as a result of various factors. More information about the potential factors that could affect the business and financial results is and will be included in EGPI Firecreek, Inc.'s filings with the Securities and Exchange Commission.

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