MARSHALL, Texas, Sept. 19 /PRNewswire-FirstCall/ -- North American Technologies Group, Inc. (BULLETIN BOARD: NATK) (NATK), the worldwide leader in composite crossties through its wholly owned subsidiary TieTek, today announced it has secured $5.5 million in additional equity financing to fund growth, working capital and its drive to profitability. This equity financing is the latest in a series of positive developments for the company including significant revenue growth, improved manufacturing productivity and strengthened relationships with key customers and vendors.
The Company sold to a group of investors, including several of its existing major shareholders, 18,644,068 shares of its Common Stock and warrants to purchase up to 9,322,034 shares of Common Stock. The shares were sold at a purchase price of $0.295 per share, which was 90% of the daily volume weighted average price of the Common Stock for the 20 trading days immediately prior to their issuance. The warrants have a 54 month term and are exercisable at any time at an exercise price of $0.36 per share, which was 110% of the daily volume weighted average price of the Common Stock for the 20 trading days immediately prior to their issuance.
"NATK investors recognize that the market for high-performance, long- lasting, environmentally responsible, engineered structural products is a strong opportunity," said NATK CEO, Neal Kaufman. "The company has demonstrated it has the commitment to product excellence, financial controls and customer success necessary to be the leader in this market."
NATK recently announced revenue of $6.4 million for the first half of 2006, which exceeded the revenue for the entire year of 2005. In July, NATK/TieTek announced the formation of a luminary board of advisors hailing from the manufacturing, recycling, government and financial services communities.
NATK, through its wholly owned subsidiary TieTek, designs, engineers, and manufactures structural composite crossties and switch ties using patented processes to recycle landfill-bound plastic, rubber and fiberglass. The products have been used in the largest railroads to carry over 1.5 billion gross tons with no degradation of performance or product decay, regardless of environmental conditions. TieTek's products outperform and outlast traditional railroad tie materials and deliver compelling economic returns to TieTek's customers.
About NATK
NATK, through its wholly owned subsidiary TieTek, produces high- performance railroad ties. TieTek uses patented technology to process recycled plastics, used tires and other mineral fillers to manufacture engineered composite components that are a longer-lasting alternative to hardwood in structural applications. The Company's securities are quoted in the over-the-counter market under the symbol "NATK". The Company's website is found at: http://www.tietek.com/ .
Contact: North American Technologies Group, Inc.
Joelle Gropper, Investor Relations
© 2006 PR Newswire
