First Colombia Gold Corp (OTCMKTS:FCGD) is delighted to announce that it has successfully secured a $5 million financing. The new equity line of credit will help the company to move forward with its acquisition and growth plans. It received the equity line of credit worth $5 million from Iconic Holdings LLC. It will also lower cost of capital.
Jason Castenir, the CEO of First Colombia said that the equity line of credit is an important achievement for the company. It will enable First Colombia to fund all strategic operations in near future. It would be able to complete strategic acquisitions at a considerably low cost of capital. It would be lower compared to other financing plans that were completed over the past one year.
Castenir further said that the corporate plans of the company are still operational. The management is focusing on growth through the acquisition of performing but rated as undervalued operations. First Colombia will work on these undervalued firms to develop and improve them by using industry expertise. It will give access to on-demand capital that will further enhance the ability to execute the strategic plans successfully.
First Colombia is following the strategy of acquisitions to expand its market share in the industry. It completed first of its acquisition in last July. It acquired running operations of gas and oil wells along with the advanced facilities, land, equipment and machinery that were used in the operations of oil interests.
The management view
The new equity line of credit will work as a substantial financial tool for First Columbia. It would allow the company to buy distress or underperforming firms. The liquidity and availability of capital to materialize the acquisitions will close these deals quickly. Clarence Parks, the President of First Colombia said that in addition to all these benefits, the financing will provide with the funds necessary to expand and grow the business after completing acquisitions.