Doheny Group Doubles Down on BDIC – Increases Total Financing Without New Stock, Warrants or Options. Loan to Fund 2,200 BDI 747’s to Increase BDIC’s Market Share
Nov 15, 2016
OTC Disclosure & News Service
LOS ANGELES, Nov. 15, 2016 (GLOBE NEWSWIRE) — Blow and Drive Interlock Corporation (OTCQB:BDIC) is pleased to announce financing.
BDIC’s initial agreement with The Doheny Group was for the production of 1,600 units. In recognizing that BDIC has immediate additional demand, The Doheny Group is agreeing to increase funding to BDIC for manufacturing and assembly of 2,200 new BDI-747 Alcohol Ignition Interlock Devices. “Of these 2,200 units approximately 600 units have already been deployed and monetized and we anticipate the remainder of the 1,600 devices to be completed and readied at our Los Angeles facility within 120 days,” said Laurence Wainer, BDIC’s CEO.
The new debt will be interest-only payments, calculated at simple annual interest with no penalties for early payment. The Doheny Group has agreed not to take any additional new stock, warrants, options, and there were absolutely no conversion provisions of any kind issued in conjunction with this additional funding. Additionally, The Doheny Group will be deferring interest on this new debt for a period of six-months. “The Doheny Group has determined that it is in their long term interest to help fund the company for maximum growth and long-term returns,” said Abraham Summers, CFO of Blow & Drive Interlock. “This should allow for BDIC to scale to 2,700 units as opposed to 2,100 units within the next 90 –120 days”.
The Doheny Group is recognizing that there is high demand for the BDI 747. “When we talk about driving market demand we typically think of customer demand, while this is always true, in our space the real driver of demand for alcohol ignition interlock devices are the administrators & lawmakers who make sure all first time and repeat DUI/DWI offenders are sanctioned to install an interlock,” said Laurence Wainer, CEO of Blow & Drive Interlock. “Our machines have exceptionally high technological capacities to service the administrative and judicial reporting and compliance requirements and this is differentiating us from our competitors. We naturally harnessed these additional technological capacities to increase the customer service experience and to help grow our customer base.
The BDI 747 is meeting the high expectations of professionals who work within the interlock industry. The innovations inside the BDI 747 machine are resulting in immediate acceptance from state program administrators and judicial systems around the country, as well as current ignition interlock service providers. With new compliance based ignition interlock removal laws sweeping the country the number of interlocks on the road in the U.S.A. is set to explode,” said Mr. Wainer, who was referencing the recent report released by Persistence Market Research titled “North America Market Study on Ignition Interlock Devices.” According to the report the “North American interlock Market was estimated at US $35.1 Million in 2015 and is expected to reach US 48.8 Million by 2021 at a Compound Annual Growth Rate of 6.6% in terms of volume and 5.6% in terms of value during the forecast period.”
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Blow & Drive Interlock
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