Tuesday, November 24, 2009

eDoorways Corp. (EDWY.PK) Announces Substantial Increase to Existing Credit Facility

eDoorways Corporation announced this morning that it will receive a $1.5 million addition to its existing $500,000 credit facility. The additional credit transpired from successful negotiations with the lending division of AJENE WATSON LLC, bringing the total capital available in the company’s revolver to $2.0 million.

Gary Kimmons, Chairman and CEO of eDoorways Corporation, stated, “With the increase in our revolving line of credit, we believe we now have sufficient liquidity to not only bring our business plan into action at an accelerated pace but also to support the forward progress of complementing our endeavors.”

Ajene Watson, Managing Member of AJENE WATSON, LLC, commented, “The expansion of the credit facility with eDoorways should be seen as our vote of confidence as to the direction of the company and in its management.”

The financial business development and management division of Watson’s firm first took the lead when AJENE WATSON, LLC was engaged by eDoorways to a 15-month consulting agreement in early 2008. After almost a year of assisting the company with restructuring, organizing, developing and deploying its business plan, the lending division of Watson’s firm determined the viability of providing the web-based consumer problem-solving gateway, lifestyle information source, and online business-to-consumer marketplace with a non-collateralized credit facility of $500,000. At an interest rate of prime plus 2% and no requirement of registration of common stock convertibles, this financing offered the company greater flexibility with limited market dilution.

“We signed on to eDoorways when the company was trading at $0.006 per share, had two hundred or so shareholders, roughly a $180,000 market cap trading by appointment, and for all intent and purposes, not much of a company structure,” sated Watson. “We renewed our consulting agreement with the company for 6 additional months in October of ‘09 and today, eDoorways has traded as high as $0.15 per share, has approximately 4,000 shareholders and growing, a $30 million plus market cap and maintains a consistent trading volume of a couple of million shares daily.”

He continued, “The company also now boasts a consulting/management staff of nearly 30 professionals and entities, including PhDs, professors, government technology contractors and professionals with access to the upper levels of the Department of Defense. The company is also demonstrating better corporate governance, financial protocol and overall operations. There is no question that the company has made significant quantifiable progress in the past two years.”

Alike to the original $500,000 capital infusion, the new credit facility of $1.5mm is also a non collateralized loan, payable year-end 2010 at a rate of prime plus 2%.

It was also indicated that despite intervening holidays, the company appears to be on schedule and should release its Beta 1.0 in mid to late December — keeping the company on target for the roll out of the additional versions of “SOLVE” (Beta 2.0, Beta 2.5, and the platform’s “SOLVE” Version 3.0) slated for release during 2010.

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