Advanced Financial, Inc. Announces Closing of Agreement with Gateway Energy Corporation.Business Editors SHAWNEE, Kan.--(BUSINESS WIRE)--April 30, 2003 Advanced Financial, Inc. ("AFI AFI American Film Institute AFI Awaiting Further Instructions AFI Armed Forces Insurance AFI A Fire Inside (band) AFI Air Force Instruction AFI Australian Film Institute AFI Agencia Federal de Investigación ") (OTC OTC See: Over-the-counter. OTC See over-the-counter market (OTC). PINK SHEETS: AVFI AVFI Action on Violence and Family Intervention ) announced that it had closed an Agreement with Gateway Energy Corporation and certain of its subsidiaries of Houston, Texas, ("Gateway") under which it provided, through an AFI wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. (Allen Drilling Acquisition Company - "ADAC ADAC Allgemeiner Deutscher Automobil Club (German automobile club) ADAC Aboriginal Drug and Alcohol Council ADAC Art Directors and Artists Club (Sacramento, California) ADAC Alcohol and Drug Abuse Council "), $900,000 of credit enhancements in the form of Letters of Credit. These credit enhancements enabled Gateway to obtain additional financing to complete the construction of certain natural gas pipeline facilities located in Madison County, Texas Madison County is a county located in the U.S. state of Texas. In 2000, its population was 12,940. Its seat is Madisonville6, and it is named for James Madison, the fourth president of the United States. Geography According to the U.S. , (The "Madisonville Project"). ADAC secured the Letters of Credit through the private placement of a new series of preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. to two investor groups. The Agreement provides, among other things, for a minimum fixed fee compensation to ADAC during the three-year period in which the Letters of Credit are anticipated to be outstanding, and a right, in the form of an Equity Participation Option, during such three-year period for ADAC to payoff the $900,000 of additional financing and receive a one-third (1/3) interest in Gateway's Madisonville pipeline facilities. Further, Gateway has granted liens to ADAC, subordinate to its banks, on its economic interest in the Madisonville Project and certain other natural gas operating systems and natural gas operating assets. The Madisonville Project is operated under a long-term agreement between Gateway, Hanover Compression Limited Partnership, and Redwood Energy Production, L.P. and is designed to treat gas to remove impurities from the gas to enable the gas to meet pipeline sales quality specifications. The Madisonville Project employs the state-of-the-art, patented, absorption-based technology developed by Advanced Extraction Technologies, Inc., for which Gateway has the exclusive U. S. license, to remove nitrogen from the gas. This press release includes forward-looking statements that involve risks and uncertainties such as are detailed from time to time in the Company's SEC filings. Actual results may differ materially from management's expectations. |
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