Proceeds of the Regulation D Rule 506(c) Offering are expected to allow the Company to execute its business plan and begin its subsidiary expansion strategy
(Distributed via the US National Newswire on Monday, October 10, 2023, at 2:44 pm Eastern time)
KING GEORGE, VA–October 10, 2023–Free Flow, Inc. (FFLO:OTCQB), which has wholly owned subsidiaries in the automobile auction, auto parts salvage, scrap metal processing, used auto sales sectors, today announced that it is seeking to raise up to $19.5 million in a stock offering pursuant to Rule 506(c) promulgated under Regulation D of the Securities Act of 1933.
A Private Placement Memorandum (PPM) details the offering of fifteen million (15,000,000) Series D Preferred Shares at a price of $1.30 per share for a total of up to $19,500,000 pursuant to Rule 506(c) promulgated under Regulation D of the Securities Act of 1933, as amended (the “Securities Act”) and/or other applicable exemptions from registration under the Securities Act and applicable state law (the “Offering”).
The shares sold through this Offering will be restricted shares and will not be freely tradable until expiry of the statutory period under Rule 144 under the Securities Act of 1933 (the “1933 Act”), or if such shares are registered. The securities may be sold only to Accredited Investors, which for natural persons, are investors who meet certain minimum annual income or net worth threshold.
For additional details of the Offering, please see the PPM on the Free Flow, Inc. website at https://www.freeflowplc.com/offering/. The Company’s Investor Deck can be viewed at https://www.freeflowplc.com/investor-deck/.
In the PPM, the Company details its revised business model, which includes a new subsidiary, Free Flow Auto Auction, Inc., a marketplace connecting automobile sellers and buyer through an automobile auction platform, at https://freeflowautoauction.com. In the event a sale is not consummated, there is also an opportunity for FFLO’s used auto parts or auto dealership subsidiaries to purchase the seller’s vehicle at a fair market price.
In addition to Free Flow Auto Auction, Inc., the Company has three additional synergistic subsidiaries: City Autos, Corp., a used auto dealership, Accurate Auto Parts, Inc., a salvage yard for used auto parts, and Motors & Metals, Inc., a scrap metal processor.
Free Flow, Inc. also possesses the rights to market and sell HYGIENiQTM – a revolutionary green and invisible photo catalyst surface coating technology based on the most advanced nanoscience. A portion of the proceeds from this Offering may support the financial plan to hire salespersons to market and sell HYGIENiQTM to car washes and other commercial users.
As stated in the PPM, the Company intends to use the proceeds from this Offering for purchase of plant and machinery, inventory, and to employ production and management staff to operate more efficiently the scrap metal processing. Funds over and above the budgeted amount would enable its wholly owned Motors & Metals, Inc. subsidiary to reduce its borrowing for plant and machinery, and funds over and above that required sum are expected to be set aside to acquire other businesses and all for increased revenues and profits.
Current subsidiary operation plans include the purchase and installation of an 8085 metal shredding machine in order to increase shredding capacity at the Company’s 19.3-acre facility in King George, Virginia, making it possible to export more shredded metals. In addition to the ability to shred more metal from cars, this would allow the Company to also increase its ability to retrieve material and metals that can be resold to secondary purchasers.