SCOTT, La., June 28, 2011 (GLOBE NEWSWIRE) -- ESP Resources, Inc. (OTCBB:ESPI) (the "Company" or "ESP Resources"), an oil and gas services company, announced that it has executed an Accounts Receivable Financing Agreement for $2,000,000 with Crestmark Commercial Capital Lending, LLC, a division of Crestmark Bank (the "Financing"). The Financing is a selective factoring line where the Company may select which customer invoices it would like to factor and when it would like to factor, within 30 days of the invoice date. The Financing replaces the Company's existing credit agreement with MidSouth Bank which had maintained a credit limit of $750,000. The Financing will provide ESP Resources with a significant increase in liquidity from its expanding accounts receivable and customer base.
"While we have appreciated and enjoyed our relationship with our existing bank, our growth has necessitated a move to a larger commercial lender," stated David Dugas, CEO of ESP Resources. "Furthermore, with Crestmark's ability to finance up to $5,000,000, we look forward to a growing with them to mitigate dilution to shareholders as we continue our rapid expansion," Dugas stated further.
About Crestmark Bank:
Crestmark Bank Company ("Crestmark") is a business-to-business lender specializing in providing working capital solutions and financial services to businesses across the country. Crestmark, an FDIC-insured bank, is a direct lender, but does not compete with a company's existing traditional banking relationship so that a business can maintain its depository accounts with its existing bank. For more information, visit Crestmark's Website at www.crestmark.com.
About www.espchem.com/">ESP Resources, Inc.:
ESP Resources, Inc. is a publicly-traded (OTCBB:ESPI) (the "Company" or "ESP Resources") oil and gas services company headquartered in Scott, LA. Through its wholly owned subsidiary, ESP Petrochemicals, Inc., the Company manufactures, blends, distributes and markets specialty chemicals and analytical services to the oil and gas industry. The Company provides its specialty products and services for a variety of oil and gas field applications including production, drilling, waste remediation, cleaning, and waste water treatment. From its blending and distribution facilities, the Company distributes its product line throughout the oil and gas producing regions of Louisiana, Texas, Mississippi, Alabama, Arkansas and Oklahoma, both onshore and offshore. The Company also distributes its specialty petrochemicals to oil and gas operators internationally. The Company's senior management has over 100 years of combined operating experience in the petrochemical industry. More information is available on the Company's Website at www.espchem.com.
Legal Notice Regarding Forward-Looking Statements:
This press release contains "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Statements in this news release that are not historical facts are forward-looking statements that are subject to risks and uncertainties. Forward-looking statements are based on current facts and analyses and other information that are based on forecasts of future results, estimates of amounts not yet determined and assumptions of management. Forward-looking statements are generally, but not always, identified by the words "expects," "plans," "anticipates," "believes," "intends," "estimates," "projects," "aims," "potential," "goal," "objective," "prospective," and similar expressions or that events or conditions "will," "would," "may," "can," "could" or "should" occur. Information concerning oil or natural gas reserve estimates may also be deemed to be forward-looking statements, as it constitutes a prediction of what might be found to be present when and if a project is actually developed. Actual results may differ materially from those currently anticipated due to a number of factors beyond the reasonable control of the Company. It is important to note that actual outcomes and actual results could differ materially from those in such forward-looking statements.
Readers are cautioned not to place undue reliance on the forward-looking statements made in this press release. In evaluating these statements, you should consider the risks discussed, from time to time, in the reports we file with the U.S. Securities & Exchange Commission. For a discussion of some of the risks and important factors that could affect the Company's future results and financial condition, see the Company's Form 10-Ks and 10-Qs on file with the U.S. Securities & Exchange Commission.