WASHINGTON, DC - December 9, 2013 - Virtual Sourcing, Inc. (OTC Pink: PGCX) in keeping with our desire to have interested parties informed we are issuing this monthly status update.
We have identified a third potential acquisition that participates in the fiberglass product market. The negotiations for the acquisition will begin this week. This company brings certain values and our source of waste fiberglass supply can reduce their product costs substantially. The location makes it viable for delivery of products we are developing to six additional states, all staying within a 300 mile radius that we have targeted for all potential plants distribution radius. The plant can make the products we are developing and allow us to ship North and East of the Mason Dixon line with the Western boundary at Pittsburgh, PA.
Our auditors are progressing on our audits and those of the concrete products manufacturers operation that has signed a letter of intent to be acquired and has negotiated a definitive contract that awaits signing with the completion of the audit. The audits will be completed this month. The parties intend to close during the later part of December 2013. If any delay occurs we will close in early January 2014.
The development of an improved non-structural block concrete product using fiberglass waste has continued since our last update with marvelous results. The strength of the product increased, weight and the production cost was reduced when compared with the standard block product made without using fiberglass at 28 days curing. We will deliver the test products to certain customers that have used this block for several years for their review during the remainder of December 2013. Our goal is to start producing these new formula products after closing the acquisition. The company should be able to use in excess of eight million pounds of fiberglass waste annually based on the new formula, historical sales and our five year projection plan.
In response to certain inquiries related to our financing arrangements we offer the following information:
Twenty-five million dollar loan package
This package funds the average of three times the adjusted EBITDA for the past two years of the acquiree. The loans interest rate, possible collateral and other typical terms are negotiable on each acquisition depending on the size of the loan and are repayable over a five year term. Each loans terms will be disclosed along with the definitive agreement as each acquisition is closed. All acquisitions are not required to close at the same time to access the full value of the loan package.
Twenty-five million dollar "firm commitment" equity package
The company intends to file all requisite documents for the funding and to return to filing our financial statements with the S.E.C. (fully reporting status) immediately upon the closure of the first acquisition. Our goal during the S.E.C. document review period is to develop institutional and market support for our common stock plus raise the share price to meet the requirements for inclusion on the NYSE Market LLC Exchange f/k/a American Srtock Exchange. We will also solidify our remaining acquisition plans during this time.
While the company is aware that shareholders' and potential shareholders' would like to know who the funding and acquisition participants are, we are not allowed to disclose the information until closing per signed agreements. This is for the protection of the acquiree business should the transaction not close or for many of reasons related to ongoing business and transactions that are being contemplated within them. The investment banker does not allow any client to use their name until a press release or disclosure in a filing is required under U.S. Securities and Exchange Commission guidelines and then only with their corporate approval of the press release or filing disclosure.
This press release contains forward-looking statements. Such forward-looking statements are subject to a number of risks, assumptions and uncertainties that could cause the Company's actual results to differ materially from those projected in such statements. Forward-looking statements speak only as of the date made and are not guarantees of future performance. We undertake no obligation to publicly revise any forward-looking statements.
Virtual Sourcing, Inc.
Investor relations @ 877-291-0053
SOURCE: Virtual Sourcing, Inc.