Alliance Creative Group (ACGX) Agreed to Amendment and Extension with Largest Debt Holder Company Also Changes Banking Relationship to Increase Credit Line while Reducing Interest Rate
CHICAGO, Nov. 8, 2012 /PRNewswire/ -- Alliance Creative Group, Inc., (http://www.AllianceCreativeGroup.com) (Stock Symbol: ACGX.pk) is pleased to announce that it has come to terms with its largest debt holder, Golden State Equity Investors, Inc. The parties have amended the terms of the convertible debenture and warrant agreement to settle on all old interest payments, reduce the future interest rate and extend the agreement for 5 years to 2017.
As of October 30, 2012 the Balance on the Prior Advance was $243,123 and the balance on the debenture was $141,812. The old interest rate on the debenture was 7.75%, the new rate will be 3.75%. Upon the exercise of its conversion rights under the debenture Golden State can convert to common shares at a rate of 80% of the past 3 day trading average price. Additionally, as long as the company is not in default of this agreement by June 30, 2013 the judgment against the former CEO, Paul Sorkin, will be deemed to be satisfied in full.
The Company has also changed banks from Centrust, a small local bank, to RBS Citizens, a very large international bank. The change was to help consolidate liabilities while reducing the interest rate significantly and increasing its lending limits.
Additional details for both transactions will be included in the company's upcoming disclosures that will be posted on www.OTCmarkets.com under stock symbol ACGX.
CEO of the Alliance Creative Group, Steven St. Louis, said, "Both of these agreements will help us tremendously moving forward. We've successful positioned ourselves to be able to access more money for growth at a lower rate while consolidating our liabilities and forming a relationship with a banking partner that understands our future acquisition desires and has the resources to help us if the numbers make sense for us to move forward on a deal. I think we are positioned very well to execute our business plans and we will keep the public informed as things progress or change."
About Alliance Creative Group, Inc.
ALLIANCE CREATIVE GROUP, Inc. (Stock Symbol: ACGX) is a printing, packaging and brand management marketing company. The Alliance Creative Group utilizes shared resources to create efficiencies between their projects and internal divisions to create quality results and long-term partnerships. The core business areas include creative and design services, printing and packaging, product fulfillment & logistics and strategic marketing. www.AllianceCreativeGroup.com
This news release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are other than statements of historical facts. These statements are subject to uncertainties and risks including, but not limited to, product and service demand and acceptance, changes in technology, economic conditions, the impact of competition and pricing, government regulation, and other risks described in statements filed from time to time with the Securities and Exchange Commission. All such forward-looking statements whether written or oral, and whether made by or on behalf of the Company, are expressly qualified by the cautionary statements that may accompany the forward-looking statements. In addition, the Company disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date hereof.
Investor Relations and Media Contact
1-847-885-1800 ext 6
SOURCE Alliance Creative Group, Inc.