Heatwurx, Inc. Announces Intention To Sell Assets, Settle Liabilities While Seeking To Redefine Its Business Model
GARDENA, Calif., Sept. 21, 2015 /PRNewswire/ -- Heatwurx®, Inc. (OTCQB: HUWX), the developer of eco-friendly patented preservation and repair equipment, announces its intention to sell substantially all assets, and pay down or otherwise settle liabilities.
The company conducted a lengthy research and development program to introduce a patented equipment set and method for asphalt repair and preservation. Initially, the company's business operations focused on selling equipment to large OEMs and distributors. When this approach proved unsuccessful due to a lack of significant and recurring orders, the company shifted its business model to include providing service work for municipalities and private companies. While it experienced moderate receptivity to this service work, the company added other facets to its business model through a subsidiary franchising program, and further offered licenses to purchasers of equipment and consumables. As with a start-up these steps were unable to achieve the desired traction in a timely manner to yield the needed revenue to sustain operations and growth.
On July 7, 2015, Heatwurx, Inc. filed a Form 8-K announcing that it had entered into a quiet period, and that it would seek potential merger candidates or an outright sale of the all of the company's assets in an effort to obtain better values for shareholders. Several proposals were submitted to the company, and following review by the board of directors, none were deemed suitable to satisfy the financial requirements of the company moving forward. Given these factors the board of directors has decided to liquidate assets and to settle outstanding liabilities.
The company requires substantial additional operating capital and its future viability is currently uncertain. The company has been unsuccessful in identifying outside officers to lead the company forward. Accordingly the board of directors has appointed John P. McGrain as the Interim Chief Executive Officer and Interim Chief Financial Officer, in addition to his recent appointment to the board of directors.
As of the quarter ended June 30, 2015, the company had Total Assets of $877,714 and Total Liabilities of $2,198,213. In addition, the company has ongoing monthly expenses consisting mainly of financed equipment and the leased office space, and other generally related operating items. The company will seek to reduce all monthly expenditures in an orderly fashion. The company also anticipates hiring a consultant to assist in the orderly sale of assets and reduction of accounts payable and other debt. Investors should refer to the most recently filed Form 10-Q for further information.
It is the company's intention to move forward as a public entity and to seek other potential merger candidates. The company can give no assurances that any of these efforts will prove successful. The company anticipates providing further updates as may be appropriate.
The statements contained in this release that are not historical facts are forward-looking statements that represent management's beliefs and assumptions based on currently available information. Forward-looking statements include the information concerning our possible or assumed future results of operations, business strategies, need for financing, competitive position, potential growth opportunities, potential operating performance improvements, ability to retain and recruit personnel, the effects of competition and the effects of future legislation or regulations. Forward-looking statements include all statements that are not historical facts and can be identified by the use of forward-looking terminology such as the words "believes," "intends," "may," "should," "anticipates," "expects," "could," "plans," or comparable terminology or by discussions of strategy or trends. Although we believe that the expectations reflected in such forward-looking statements are reasonable, we cannot give any assurances that these expectations will prove to be correct. Such statements by their nature involve risks and uncertainties that could significantly affect expected results, and actual future results could differ materially from those described in such forward-looking statements. For a further list and description of the risks and uncertainties we face, please refer to our most recent Securities and Exchange Commission filings which are available on its website at http://www.sec.gov. Such forward-looking statements are current only as of the date they are made, and we assume no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
CONTACT: Chris Bragg, chris@mcgrainfinancial.com
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SOURCE Heatwurx, Inc.
