Steve Conroy, president of Eco Building Products. VISTA, CA - Eco Building Products (OTCBB: ECOB) received $100 million in backing from a Chinese bank to fund global expansion, the treated lumber products firm announced.
Eco Building Products, Inc.says it received a $100 million standby letter of credit to support a major expansion in its core business, manufacturer of proprietary wood products treated with eco-friendly proprietary chemistry to protect against fire, mold, fungus, rot-decay, insects and termites.
Eco Building's product brands include ECOB WoodSurfaceFilm and FRC Fire Retardant Coating. Eco Building products, "Eco Red Shield", "Eco Blue Shield" and "Eco Clear Shield" use a patent pending technologyfor wood protection, preservation, and fire safety on building components constructed of wood; joists, beams and paneling, floors and ceilings.
Eco Building establishes licensees to sell wood treated using its processes. It has beene xpanding gradually around the U.S.
"With the Eco branding of coated lumber products the company now has the potential financial support to expand its products to the world market," says Steve Conboy, president and CEO of Eco Building Products. "We now have the foundation to compete head to head with the treated lumber industry, a multi-billion dollar market place. We have built a strategic infrastructure with eight approved manufacturing sites allowing us to rapidly capture this multi-billion dollar a year lumber market in the USA and abroad."
The $100 million from InsurFinancial Holdings, Plc is provided by the Bank of China from its private client division in Beijing. The agreement grants an option that allows InsurFinancial Holdings to convert its fee into an equity investment of up to $5 million a year for the next four years.
"Industry supply chain has changed due to the past several years of housing decline," says Conboy. "ECOB is retooled and ready to explode into the recovering housing market."
About the Stand by Letter of Credit (SBLC)
InsurFinancial, under contract, arranged the SBLC to improve the credit worthiness of the Company. In the event ECOB's liabilities from the expansion cannot be met from ordinary course of business the Company can request its bank to draw down on the credit facility to cover liabilities. ECOB has been advised that the SBLC has been secured with blocked funds deposited in the Bank of China. Though, not yet exercised, the Bank of China will honor the liabilities up to one hundred million dollars.Eco Red Shield", "Eco Blue Shield" & "Eco Clear Shield" utilizing patent pending technology is the ultimate in wood protection, preservation, and fire safety to building components constructed of wood; from joists, beams and paneling, to floors and ceilings.