Blow & Drive (BDIC) Signs LOI With The Doheny Group to Finance 1,600 BDI 747/1 Machines
September 02 2016 - 4:00AM
Marketwired
Blow & Drive (BDIC) Signs LOI With The Doheny Group to
Finance 1,600 BDI 747/1 Machines
LOS ANGELES, CA-(Marketwired - Sep 2, 2016) - Blow and Drive
Interlock Corporation (OTCQB: BDIC) an offender monitoring and
police grade alcohol detection device manufacturing and
distribution company is pleased to announce financing of 1,600 of
its BDI 747/1 breath alcohol ignition interlock devices.
The Doheny Group has entered into a Letter of Intent with Blow
& Drive Interlock Corp (BDIC) to provide the company with
financing for the manufacturing and assembly of 1,600 of the
Company's state of the art BDI 747 breath alcohol ignition
interlock machines to meet our high demand.
The general terms of the LOI allow for BDIC to make interest
only payments for a term of up to 36 months. BDIC will have the
full discretion to make any or zero principal payments with a
balloon payment at the end of the term. We believe that this will
be very beneficial to the Company as it will minimize actual cash
outflows and allow for revenue generated to be focused on actually
growing the BDIC business. Additionally, there will be no
prepayment penalty in the event BDIC decides to refinance this
financing at a later date.
In consideration for these friendly terms we will be issuing The
Doheny Group stock and a royalty on future machines leased but
there will be no warrants, options, original interest discount, and
no convertibility of any kind with regard to the debt. This is in
keeping with our long-standing corporate commitment to our
shareholders against toxic convertible debt or any financing of a
toxic nature.
"Specifically this financing will allow the Company to
capitalize on the power of having approximately 2,100 units
generating reliable revenue on a re-occurring monthly basis. We are
excited to be securing funding that will not harm our shareholders
or burden the company with toxic convertible debt. This is a vow I
have made to our shareholders since day one," said Laurence Wainer
CEO of Blow and Drive Interlock."
We will be closing on the entire sum as we better finalize our
cost requirements. The Company, with this funding buying power, has
begun the process of re-negotiating raw material and relating
assembly costing issues while we work through the definitive
financing related formalities. We will naturally be keeping
shareholders updated as we continue to progress through this
process.
We are looking forward to closing on this financing immediately
and we anticipate being able to take delivery of the last 500 units
of our initial 1,100 unit order to our Los Angeles facility within
the next two or three weeks.
Once we receive and lease these units, as well as the additional
100 units that are currently en route to our facility, The Doheny
Group has agreed to continue financing BDIC for a total of 1,600
units. This will bring BDIC's total inventory of revenue-generating
machines with paying clients to approximately 2,100 units across
the 11 states in which BDIC has received state regulatory approvals
by year-end.
Gnosiis International is providing economics advisory to us as
we proceed through this process. Gnosiis International has been
working closely with both BDIC and The Doheny Group and the parties
are in agreement with regard to the inherent underlying economic
value-potential of the BDIC business. We have consensus on how to
best grow the BDIC business to increase shareholder value and this
financing reflects this understanding. As interested shareholders
are aware, we had announced financing for expanded production of
our BDI 747 once in the past that did not materialize and we are
committed to not having a repeat situation.
Sincerely,
Abraham Summers Chief Financial Officer Blow & Drive
Interlock Corp.
FORWARD-LOOKING DISCLAIMER This report may contain certain
forward-looking statements and information. This material contains
statements about expected future events and/or financial results
that are forward-looking in nature and subject to risks and
uncertainties. Such forward-looking statements by definition
involve risks, uncertainties and other factors, which may cause the
actual results, performance or achievements of mentioned company to
be materially different from the statements made herein.
Contact: Blow & Drive Interlock www.blowanddrive.com
877-238-4492