Composite railroad tie maker North American Technologies Group Inc. has secured $5 million in new financing that will allow it to improve production lines and buy new materials-handling equipment at its facility in Marshall, Texas.
The Houston firm finalized refinancing with Opus 5949 LLC and $5 million in new financing with some of the company's major shareholders, according to a July 13 news release.
NATK started production at the Marshall facility last year, but said start-up problems caused significant operating losses. Those problems are being solved, and the company is preparing to increase production.
The interest rate on the Opus loan was reduced to 7 percent from prime plus 7 percent.
The company paid accumulated interest of roughly $1 million by issuing 4.5 million shares of common stock. In May, the company did not make a principal and interest payment of $757,944 to Opus, because it was conserving its cash resources, according to a May 13 filing with the Securities and Exchange Commission.
NATK officials did not return calls seeking comment.