TAMPA, FL / ACCESSWIRE / December 11, 2023 / Umbra Applied Technologies Group, Inc (OTC PINK:UATG), announced today that it has reached an agreement with a lending partner to support the growth of its subsidiary H2O Processing.
The private equity partner has provided the necessary strategic growth capital to support the production of its iron mitigation systems that remove metal ion from crude oil. Initial systems have entered production and are expected to be delivered to customer sites over the next several weeks.
The obligations of the debt financing will be paid from the proceeds of production. The timing of the first payment will allow for the units to be constructed, delivered, placed into operations, and generate cash flow before that first payment is due. Notably the Company will be able to fulfill the requirements from more traditional financing sources as a result of this financing.
H2O Processing went through underwriting with The Bancorp SBA program in May of this year which required minimum revenues totaling three months.
H2O Processing CEO Stan Abrams said, ‘H2O Processing has worked very hard over the past several months with UATG to secure funding for our new iron removal system. This funding represents a major development for H2O to build its first full-scale production IRS systems for clients. This is a major and critical development in the oil industry. Our unique and proprietary system will enable the sale of iron laden crude oil to the pipeline and improve production in the oil field for many producers who have been heavily penalized due to the iron content in their oil. H2O expects to show immediate success in Q1 of 2024."
H2O Processing expects to submit documentation required by SBA after three months of revenues at the end of the first quarter. The Company will seek additional funding, sufficient to support manufacturing operations as well as to support production of its water treatment systems over the next four months.
"We look to support our continued growth driven by increased H2O Processing brand awareness. UAT Group has been pleased working with several capital partners to manufacture additional Iron Removal Systems and to commence the production of the water treatment platform," said Thomas Crom, CFO, UAT Group.
This announcement on Monday came amid growing optimism among the Company's executives that the traction the UAT Group conglomerate has gained this year will position the Company for exponential success in the coming new year. The investment in H2O Processing contributes to the Company's consolidated growth initiatives which include augmenting existing product offerings while expanding the service capabilities of its subsidiaries. The Company has streamlined its obligations and consolidated infrastructure resources to support top line growth and its planned expansion into broader clean environmental technologies.
"The proceeds of the financing will support our long-term capital structure and bolster The Company's growth verticals. This is the first of several facilities we are currently negotiating terms for and expect additional lines to be in place in the coming weeks," said Alex Umbra, Chairman, UAT Group.
The Company is currently engaged in ongoing negotiations for additional financing from other venture capital groups therefore, for competitive reasons, will not be releasing additional details at this time.
About Umbra Applied Technologies Group, Inc.
The firm is located in Tampa, Florida and focuses on advanced technologies across many disciplines. UAT Group is a holding company with interests in both public and private companies during the early stages of development as well as growth stages of companies with a synergistic business model to UAT Group subsidiaries.
About H2O Processing, Inc.
The company is located in Denver, CO and is an advanced water treatment technology company.
For more information, visit www.uatgroup.com
For more information about H2O Processing, Inc. visit: https://h2oprocessing.com/
Investor and Media Contact: info@uatgroup.com
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Forward-Looking Information
This news release may include "forward-looking statements" including forecasts, estimates, expectations, and objectives for future operations including but not limited to its ability to conclude a business combination with a third party, sale of assets, return of capital or initial public offering and a secondary listing on the OTC as a result of aforementioned and its ability to fund the exploration of its assets through the raising of equity or debt capital or through funding by a joint venture partner that are subject to a number of assumptions, risks, and uncertainties, many of which are beyond the control of Umbra Applied Technologies Group including but not limited to capital markets and securities risks and continued development success on technology. There can be and are no actual or implied guarantees that any of the above activities will be completed or completed on terms acceptable to the Company and its shareholders or approved by any regulatory authority having jurisdiction. Such forward-looking information represents management's best judgment based on information currently available. No forward-looking statement can be guaranteed, and actual future results may vary materially. Umbra Applied Technologies Group does not assume the obligation to update any forward-looking statement, except as required by applicable law.
SOURCE: Umbra Applied Technologies Group, Inc.
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