SOURCE: Pelletsales.com

October 14, 2008 14:00 ET

PelletSales.com Secures Financing to Meet Red-Hot Demand for Wood Pellet Fuel Supplies

GOFFSTOWN, NH--(Marketwire - October 14, 2008) - PelletSales.com, (http://www.pelletsales.com), the leading nationwide retailer of wood pellets, today announced that is has secured a financing package from Square 1 Bank.

According to Jon Strimling, President of American Biomass Corporation, PelletSales.com's parent, "As skyrocketing heating oil prices continue to plague homeowners, wood pellets are being recognized as a lower-cost, environmentally responsible alternative. This is driving unprecedented growth in the wood pellet heating industry and for PelletSales.com.

"The company has rapidly expanded its operations from its East Coast base, currently launching service in areas of Colorado, California, Oregon and Washington State," continued Mr. Strimling. "Sales have strongly increased, and our extensive supply network of more than 30 pellet manufacturers ensures a steady flow into the Northeast even while other retailers have not been able to maintain reliable supplies.

"However, to meet the mounting working capital requirements of the business and to make good on our promises to homeowners that they will have ample supplies through the coming winter, we sought additional financing from a partner that understands high growth companies," Mr. Strimling explained. "This financing allows us not only to expand service to our traditional bagged pellet markets, but to continue to accelerate development of systems for pellet distribution in bulk," he said.

Richard Casey, CEO of Square 1 Bank said, "Square 1 is proud to partner with PelletSales.com in expanding their business of renewable heating fuels. As entrepreneurs experienced in working with emerging companies, we fully grasp the importance of positioning for growth. It is our breadth of knowledge and depth of relationships that enable us to deliver the creative and flexible financing solutions that help our customers realize their objectives."

Casey continued, "Though this is a time of disruption in many credit markets, Square 1 Bank continues its strong growth and is poised to further expand its business of serving entrepreneurial companies like PelletSales.com. Square 1 has remained focused on its core market of venture-backed companies and has stuck to the basics of sound banking -- taking in deposits and making loans -- all while delivering unmatched service."

About Square 1 Bank

Square 1 Bank is a full service commercial bank dedicated exclusively to venture banking -- providing financial services to entrepreneurs and venture capital firms. Square 1's expertise, focus and strong capital base provide solid support for its clients' needs in all stages of growth and expansion. The bank offers flexible, tailored products and solutions aided by the latest in technological innovations. To serve its relationships, Square 1 has offices coast to coast in Austin, Boston, Boulder, Durham, McLean, New York, San Diego, Santa Monica, Seattle and the Silicon Valley. More information is available at www.square1bank.com.

About PelletSales.com

PelletSales.com has rapidly become the nation's leading provider of wood pellet fuels directly to residences. Many consumers require about three tons of wood pellets to heat their homes for a season. PelletSales.com offers consumers the ease of online ordering combined with convenient home delivery of these fuels. The company provides retail delivery throughout the East Coast and in selected areas of the Midwest and West. PelletSales.com also provides consumers the opportunity to buy truckloads of product anywhere in the country through its extensive network of over 30 manufacturing sources. Contact: www.pelletsales.com.

Contact Information

  • For further information contact:
    Jennifer Nickulas
    Marketing
    Email Contact
    603-623-1150

    or

    Steven Swartz
    SIZZLE PR
    978-524-9595
    Email Contact