Magnus Products
Company: Magnus Products (“Company”)
Financing Amount: $1,500,000 Accounts Receivable Line of Credit, $3,000,000 Equipment Term Loan
Financing Date: February 9, 2022
About the Company
Magnus Products (“MP” or the “Company”) recently signed a 5-year 400,000 (minimum) ton contract with an investment grade steel producer. During the normal course of steel production, small particulate carbon, coal dusts, iron, iron oxide dusts generated as byproduct. As part of the investment grade steel producer’s environmental improvement strategy, MP has been formally contracted to recycle the waste product into briquettes which have uses in rural cooking, heating and providing energy for greenhouses, among other uses.
Situation
As a result of the successful negotiation of the contract with the investment grade steel producer, which took over one year, the Company was in a position where they did not have adequate working capital for operations and also needed to purchase heavy machinery for use in the briquetting process.
Solution
Alantes secured a $1,500,000 Accounts Receivable Line of Credit and a $3,000,000 Machinery & Equipment lease which allowed the company to access working capital and acquire the target heavy equipment. This allowed to company to quickly grow revenue to over $10,000,000 top line revenue and have sufficient cash flow to bolster operations. “Alantes’ expertise and knowledge of the financing process was integral in allowing our company to acquire the working capital and equipment we needed.” explained Rich Morris, the Company’s CFO. “Their capital raising expertise has allowed our company to experience hyper growth as we continue to execute on our business plan.”
About Alantes
Alantes Corporate Finance (“Alantes”) specializes in capital raises and strategic advisory for small to middle market businesses across the nation. Our team prides itself on our ability to provide unique solutions for all of your business needs. Whether you’re looking to acquire a new company or additional working capital for operations, Alantes is your trusted source for business growth and expansion. Our multi-faceted approach allows us to craft creative solutions that adds value at the most critical junctures so you can focus your resources on core business activities.
For more information on this transaction, contact Alantes Corporate Finance at info@alantes.com
Alantes Corporate Finance, LLC
234 5th Avenue, 2nd Fl
New York, NY 10001
www.alantes.com
