FACT Corporation Enters into Agreement to Monetize Note Receivable; Terms Include Receipt of $400,000 Within 120 Days.NEPTUNE Neptune, in Roman religion and mythology Neptune, in Roman religion and mythology, god of water. He was presumably an indigenous god of fertility, but in later times he was identified with the Greek Poseidon, god of the sea. , N.J. -- FACT Corporation (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :FCTOA), an emerging nutrition solutions company, today announced that it has entered into an agreement with various third parties whereby FACT has transferred all of its rights and interest in a promissory note promissory note, unconditional written promise to pay a certain sum of money at a definite time to bearer or to a specified person on his order. Promissory notes are generally used as evidence of debt. payable to FACT by a former subsidiary, Capital Reserve Canada Corporation (CRCL CRCL Creatinine Clearance CRCL Circle CRCL Coalition to Restore Coastal Louisiana CRCL Center for Research in Computational Linguistics CRCL Columbia River Conservation League ). Under the terms of the agreement, FACT will receive consideration totalling $400,000 cash and 500,000 free-trading shares of CRCL. The cash proceeds are to be received over the next 120 days in five installments, including two $50,000 payments and three payments of $100,000 each. "We are very pleased with our successful conclusion of negotiations to settle this matter," said Jacqueline Danforth, CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of FACT Corporation. "The original terms of the promissory note we have assigned do not require payment until June 2007, which makes collection somewhat uncertain. By agreeing to a discount on the total amount payable under the terms of the note, FACT Corporation will receive substantial cash proceeds in the next few months. These funds can be productively applied to our ongoing working capital requirements Capital requirements Financing required for the operation of a business, composed of long-term and working capital plus fixed assets. . The additional 500,000 shares in Capital Reserve Canada may provide us the opportunity to ultimately recover the entire $662,059 due under the note." As of September 30, 2005, the note receivable note receivable A debt due from borrowers and evidenced by a written promise of payment. Note receivable, an entry on the asset side of many corporate balance sheets, indicates the dollar amount of loans due to be repaid by borrowers. was valued on the Company's balance sheet at $325,599. Amounts recovered in excess of that sum will be income at the time collected. About FACT Corporation FACT Corporation develops, licenses and markets proprietary nutrition solutions through its wholly-owned subsidiaries, Food & Culinary Technology Group Inc. and FACT Products Inc. The FACT companies serve clients who manufacture, distribute and market functional food products through a variety of conventional and alternative distribution channels, including branded and private-label retail opportunities, as well as food-service and specialty markets. For more information about FACT and its products, industry trends and functional foods, please visit www.factfoods.com. |
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