$ECOB News - ECO Building Products Closes Up To $3.4M in Financing to Fill Pending Purchase Orders and Support Capital Expansion

VISTA, Calif., (http://www.financialnewsmedia.com News Alert) - Eco Building Products, Inc. (OTC Pink: ECOB) (OTCQB: ECOB), a manufacturer of treated wood products that are protected against fire, mold/mycotoxins, fungus, rot-decay, wood ingesting insects and termites by our proprietary eco-friendly WoodSurfaceFilm(TM) and FireResistantCoating(TM) technology (collectively \"Eco Red Shield(TM)\"), today announced it has entered into definitive agreements for up to $3.4M in financing to support filling a backlog in purchase orders from Major Big Box Customer and to increase production capacity at its manufacturing facilities stemming from a growing demand for Eco Red Shield treated lumber at its Major Customer following a successful Second Pilot commercial launch program.



Under the terms of the agreements, the Company will receive up to $1.4M in capital in equal installments of $350,000 over the next four months, to support the filling of backlogged orders and meet increasing demand for Eco Red Shield, with the goal of reaching sales of $1.5M in the fourth month, which will potentially put the Company in a cash flow positive position. Concurrently, the Company received equity financing of $800,000 in two tranches to support the expansion in production capacity at its core manufacturing facilities from $750,000 in production capacity per month to $2,000,000 per month, as well as retire approximately $300,000 in convertible debt financing previously entered into on unfavorable terms. In addition, the Company will enter into an expandable revolving credit facility agreement for $1.2M to support its supply chain that will allow the Company to confidently increase its marketing efforts and demonstrate long term sustainability to its Major Big Box Customer.



\"This funding represents a transformational milestone for the Company from a revenue growth and sales trajectory standpoint,\" said Steven Conboy, President & CEO of Eco Building Products. \"We now have the capital needed to meet a recent dramatic increase in demand for Eco Red Shield from our Major Big Box Customer, who is now in a position to begin aggressively marketing our product to its massive customer base as an optimized solution to meet key unmet needs in the $60B North American lumber industry. We have positioned ourselves extremely well to meet an expected continued surge in demand...