Deerfield Beach, FL -- (SBWIRE) -- 09/16/2010 -- South Florida based CHDT Corporation (CHDO.OB), announced today that the company CEO and a board member have loaned the company in excess of $2,000,000 million dollars to be used for factory purchase order financing.
Over the past quarter Capstone Industries, Inc., a wholly owned subsidiary of CHDT Corp, has received millions of dollars in retail customer purchase orders many of which are from new retailers ordering for the first time. From the time purchase orders are placed with the company’s factory partners, until the finished product is shipped to retail customers, there is a period of 90-120 days. These orders cannot be financed from the company’s asset based line of credit until the order is produced, received in the US, shipped to the customer, and then invoiced. The company has been extremely successful in negotiating open payment terms with their factories but at times of excessive volumes, the company relies on bridge funding from insiders for additional financial support to cover P.O. financing for this period.
“I feel fortunate to have a CEO and board that are bullish on our future and are willing to aid the company in order for CHDT to fulfill its supply commitments. These loans are reflective of the support the Directors have for the CHDT management and the direction the company is moving. By loaning the company money, management does not have to be forced into expensive unconventional loan instruments and I feel strongly that the success of our company is greatly due to their loyalty. I would publicly like to thank them for their support”, said Howard Ullman, Chairman of CHDT Corporation.
CHDT recently announced during its earnings conference call that the company has a record backlog of over $4,600,000 dollars and the financing provided by the company’s insiders will enable the company to deliver these orders on time.
About CHDT Corporation
CHDT Corporation http://www.chdtcorp.com) is a public holding Company that engages, through its wholly owned subsidiaries, in the development, manufacturing, logistics, and distribution of consumer products to retailers and wholesalers throughout North America. See www.chdtcorp.com for more information about the Company and also http://www.capstoneindustries.com for information on our current product offerings. Reference of URLs in this press release does not incorporate said URLs or any of their contents in this press release.
FORWARD-LOOKING STATEMENTS: This press release, including the financial information that follows, contains "forward-looking statements" as that term is defined in the Private Securities Litigation Reform Act of 1995, as amended. These statements are based on the Company’s and its subsidiaries’ current expectations and involve risks and uncertainties, which may cause results to differ materially from those set forth in the statements. CHDT undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events, or otherwise. Forward-looking statements in this press release and risks associated with any investment in CHDT, which is a small business concern and a "penny stock Company” and, as such, a highly risky investment suitable for only those who can afford to lose such investment, should be evaluated together with the many uncertainties that affect CHDT's business, particularly those mentioned in the cautionary statements in current and future CHDT's SEC filings.
SOURCE: CHDT Corporation
Capstone Industries, Inc.
Jane Klein 954-570-8889, ext. 312
janek@capstoneindustries.com