Flame Seal Agrees to Terms With Caprock Funding For a Credit Line to Help Finance Expansive Growth

HOUSTON, Nov. 16, 2011 /PRNewswire/ -- Flame Seal Products (OTC-PINK: FLMP) releases the following to FLMP shareholders:

Flame Seal Products, Inc. has received a $350,000 line of credit from Caprock Funding for financing receivables, as a means to manage the high growth rate of sales of Flame Seal-TB to credit accounts in the Spray Foam Insulation Market.

After a month of negotiations with Mr. Robert Sale and Brad LeFevre of Caprock Funding, this new agreement provides Flame Seal the means to support up to $2-3Million / year of credit lines for customers in the Foam Insulation Market, with the option to increase the overall financing level to match increased demand.

Caprock Funding is a Houston-based direct lender of credit facilities for clients with commercial accounts receivable.

From the President:  "We at Flame Seal are pleased to make this announcement, as it answers questions regarding our ability to handle the high rate of growth we are beginning to see in this market.  This is especially true since a great deal of the business is concentrated with several large contracting firms and re-sellers, all of whom command a sizable credit line with Flame Seal.  The growth rate that we are experiencing in this industry, which will continue to expand at a high rate over the next 12 months, made the decision to seek receivable financing an absolute must.  

"This gives Flame Seal the ability to aggressively pursue a maximum market capture without fear of outgrowing our financial capability.  The fee structure of Caprock Funding is very reasonable, and does not burden our margins.  In fact, given this market's high volume potential, we decided from the beginning to establish our pricing and margin structure to allow for this type of financing.

"In other, related news, we have just received word that our new facility is ready for us to take possession.  Our first new liquid production tank system is already scheduled for delivery in the next few days.  All related support systems for the tank, primarily for manufacturing Leather Seal, will be built and set up in the next 2-3 weeks.  We will shift the Leather aspect of our business to the new location first, while continuing to manufacture Flame Seal-TB in our old location.  Our capacity at the Houston facility, once Leather Seal production is no longer required there, will easily keep up with demand through January or February, as we shift our business to the new location in stages, until the move is complete in March.

"While I have seen comments on the message boards about a "grand opening" at our new location, we have too much to keep up with to hold such an event at this time.  For now, we are putting together a video tour which we will provide with the next press release.  We may have to consider the idea of holding our grand opening in conjunction with a stockholders' meeting at the new location after everything has been moved and set up.

"For the time being, we must stay focused on all this new business, and make sure we grow as efficiently as possible.  Now that we have secured the means of financing rapid growth domestically, we turn our focus on achieving the same for our international business which is also growing very rapidly.

"We will provide more information in upcoming Press about other aspects of Flame Seal's Business."  Michael Kiser, President of Flame Seal Products, Inc.

FLAME SEAL PRODUCTS, INC. (FLMP) began trading March 27, 2000 on  OTCMarkets.  Flame Seal Products, Inc. is the Transfer Agent of record. 

Contact:
Michael D. Kiser
Flame Seal Products (symbol: FLMP)
Offices: 713-668-4291
Website: www.flameseal.com

SOURCE Flame Seal Products