TX Rail Products, Inc. Secures Credit Line Expansion at Attractive Terms to Accelerate Growth
Rhea-AI Summary
TX Rail Products (TXRP) has announced a significant expansion of its credit line from $500,000 to $1 million with its existing lender at prime rate plus 1%. The expanded facility aims to strengthen the company's supply chain and meet growing customer demand for rail products.
The company has implemented strategic initiatives including securing materials from regions unaffected by U.S. tariffs, providing cost stability for 8-12 months. Additionally, TXRP has expanded its delivery capacity to enhance logistics capabilities and ensure timely customer service as operations scale.
Positive
- Credit line doubled from $500,000 to $1 million
- Favorable interest rate secured at just 1% above prime
- Strategic material sourcing hedges against tariff-related price increases for 8-12 months
- Expanded delivery capacity to improve logistics capabilities
Negative
- Company trades as penny stock on OTC Markets Pink sheets
- Exposure to U.S. tariffs could impact material costs
- Reliance on CEO-provided financing indicates potential capital constraints
News Market Reaction 1 Alert
On the day this news was published, TXRP gained 4.79%, reflecting a moderate positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
Takes Steps to Strengthen Operations and Manage Costs
ASHLAND, Ky., April 02, 2025 (GLOBE NEWSWIRE) -- TX Rail Products, Inc. (OTC Markets PINK: TXRP), a supplier of rail and rail products to the U.S. coal mining industry, short line railroads and tunneling contractors, today announced the signing of increasing the Line of Credit with its existing lender to support its growth strategy. The company has also implemented key initiatives to strengthen operations and effectively manage costs.
New Credit Line
The new credit line expands total availability from
Operational Updates
In anticipation of changing market conditions, TX Rail Products proactively secured materials and supplies from regions unaffected by recent U.S. tariffs to hedge against future price increases. This was a strategic move to support cost stability for at least the next 8 to 12 months and position the company competitively from a pricing perspective despite market fluctuations.
Furthermore, in response to growing business demand, the company also expanded its delivery capacity to improve its logistics capabilities, enhance efficiency and ensure timely service to customers as the company scales its operations.
Mr. Shrewsbury, CEO and Chairman of TX Rail Products, Inc., commented, “Increasing our credit line, securing essential materials at favorable pricing and investing in our delivery infrastructure reinforces our ability to sustain our competitive position and deliver future growth. As we execute our operational roadmap, these milestones demonstrate our commitment to smart, sustainable expansion while maintaining a strong and resilient foundation.”
Forward-Looking and Cautionary Statements
Except for the historical information and discussions contained herein, statements contained in this release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (PSLRA) and other applicable law. When used, the words "believe", "anticipate", "estimate", "project", "should", "expect", "plan", "assume" and similar expressions that do not relate solely to historical matters identify forward-looking statements. Forward-looking statements are based on the Company's current assumptions regarding future business and financial performance. Forward-looking statements concerning future plans or results are necessarily only estimates and actual results could differ materially from expectations. These statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially, including the following: our ability to implement our business strategy; our financial strategy; a downturn in economic environment; our failure to meet growth and productivity objectives; a failure of our innovation initiatives; risks from investing in growth opportunities; fluctuations in financial results and purchases; the impact of local legal, economic, political and health conditions; adverse effects from environmental matters and tax matters; ineffective internal controls; our use of accounting estimates; our ability to attract and retain key personnel and our reliance on critical skills; impact of relationships with critical suppliers; currency fluctuations and customer financing risks; the impact of changes in market liquidity conditions and customer credit risk on receivables; our reliance on third party distribution channels; Securities and Exchange Commission regulations related to trading in "penny stocks;" the continued availability of certain financing provided by our CEO; and other risks, uncertainties and factors or in materials incorporated therein by reference. Any forward-looking statement in this release speaks only as of the date on which it is made. We assume no obligation to update or revise any forward-looking statement. Notwithstanding the above, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1933, as amended, expressly state that the safe harbor for forward looking statements does not apply to companies that issue penny stocks. Because we may from time to time be considered to be an issuer of penny stock, the safe harbor for forward looking statements under the PSLRA may not be applied to us at certain times.
Contacts
Investor Relations:
Brett Maas
Hayden IR
txrp@haydenir.com
646-536-7331
William “Buck” Shrewsbury
Chairman and CEO TX Rail Products, Inc.
(606) 928-3131
FAQ
What is the new credit line amount for TX Rail Products (TXRP)?
How has TXRP addressed potential tariff impacts on its business?
What operational improvements has TXRP implemented in 2025?
What is the interest rate on TXRP's new expanded credit facility?
How will TXRP use its expanded credit line?
