NWGN NewGen Technologies Inc (CE)

NewGen Technologies, Inc. (OTCBB: NWGN): Financings Would Be Used to Complete the Upgrade of Its ReFuel America NC, SC and GA Terminal Facilities and for General Working Capital NewGen Technologies, Inc. ("NewGen") (OTCBB: NWGN), today announced that it and Greystone Business Credit II, LLC ("Greystone") reached an agreement in principal relating to up to $18 million in secured debt financing. Proceeds from the financing would be utilized to refurbish and upgrade NewGen's hydrocarbon terminal facilities and for general working capital. Greystone's proposed credit facility includes a revolving line of credit in the maximum amount of $18 million based on predetermined lending formulas, with up to $10 million based on NewGen's accounts receivables, $6 million based on NewGen's machinery and $2 million based on NewGen's land and improvements. The loans would bear interest at a rate of 4% plus the prime interest rate. As additional consideration for the financing, Greystone would receive a warrant to purchase 250,000 shares of NewGen's common stock at a price of $1.00 per share. The Greystone financing is contingent upon the consent of Cornell Capital Partners, LP and the funding by Cornell Capital Partners, LP of previously committed financing, customary business due diligence and commercial agreements. "We are very pleased that Greystone desires to finance our existing hydrocarbon terminal facilities and our future working capital needs," stated S. Bruce Wunner, CEO of NewGen. "Upon successful closing of this transaction, we expect to be able to fulfill our business objectives." About NewGen Technologies, Inc. NewGen's mission is to be a leading manufacturer, processor and distributor of premium biofuels that are intended to dramatically reduce the ecological and economic impact of world petroleum use. NewGen believes that it has developed among the cleanest burning and highest performing fuels in the world by utilizing technology that allows for more complete combustion, which NewGen believes will result in improved miles per gallon and significantly decreased harmful emissions, including reduced carbon monoxide, carbon dioxide, nitrous oxides, particulates and black smoke. The company's fuel products include proprietary and complex technology, substantially and predominantly derived from petroleum sources, which are intended to improve the performance of gasoline and diesel fuels, as well as domestically-produced and environmentally-friendly alternative fuels such as Ethanol-based E85 and Biodiesel-based B20. The vision of NewGen and ReFuel America, NewGen's wholly-owned U.S. subsidiary, is a world less dependent on oil, using secure, homegrown fuels which better preserve our most important resources - the air we breathe and water we drink. NewGen Technologies also owns 60% of ACTANOL Bioengineering, Inc. which has acquired 98.8% of The IPF Group. Since its foundation in the early 1970's, The IPF Group, headquartered in Friedrichsdorf/Taunus, Germany has become a significant force in the engineering world. The Company is a leading enterprise in engineering, planning and manufacturing design, having completed hundreds of projects for international companies and organizations. Some of the current IPF clients include: Audi, BASF, BMW, Corning, DaimlerChrysler, Dynamit Nobel, General Motors, Hyundai and Volkswagen. Additional information can be found at the company's websites: www.newgenholdings.com, www.refuelamerica.com, www.actanolbio.com and www.ip-fischer.de. Investor Information -- To request investor information and attend online corporate meetings, please visit our website at: http://www.b2i.us/irpass.asp?BzID=1316&to=ea&s=0. Safe Harbor Statement Under the Private Securities Litigation Act of 1995 - With the exception of historical information, the matters discussed in this press release are forward-looking statements that involve a number of risks and uncertainties. The actual future results of NWGN could differ significantly from those statements. Factors that could cause actual results to differ materially include risks and uncertainties such as the inability to finance the company's operations or expansion, inability to hire and retain qualified personnel, changes in the general economic climate, including rising interest rate and unanticipated events such as terrorist activities. In some cases, you can identify forward-looking statements by terminology such as "may," "will," "should," "expect," "plan," "anticipate," "believe," "estimate," "predict," "potential" or "continue," the negative of such terms, or other comparable terminology. These statements are only predictions. Although we believe that the expectations reflected in the forward-looking statements are reasonable, such statements should not be regarded as a representation by the Company, or any other person, that such forward-looking statements will be achieved. We undertake no duty to update any of the forward-looking statements, whether as a result of new information, future events or otherwise. In light of the foregoing, readers are cautioned not to place undue reliance on such forward-looking statements. For further risk factors see the risk factors associated with our Company, review our SEC filings.