CORUNNA, Ontario, Nov. 1, 2004 (PRIMEZONE) -- Megola, Inc. (OTCBB:MGOA), a leading solution provider in physical water treatment, microbiological control, wastewater treatment and air purification, announced today that Airam Capital Group, Inc., (www.airamcapital.com) an investment firm serving as advisor to the company, has facilitated a Standby Equity Distribution Agreement for the company. A financing commitment has been signed with Cornell Capital Partners, LP, a private New Jersey based private equity fund, to provide Megola with up to $10 million dollars in financing.
Under the terms of the agreement, at its discretion, Megola may issue shares at any time over the next two years. The maximum aggregate amount of the equity placements pursuant to the agreement is $10 million. Subject to this limitation, Megola may draw up to $280,000 per week. The facility may be used entirely at Megola's discretion, subject to an effective registration.
"We are pleased to enter into this stock Standby Equity Distribution on terms that are favorable to both companies," said Megola President Joel Gardner. "This new funding instrument will provide us additional working capital."
"We are happy to assist Megola Corp. in meeting its ongoing financing needs and we look forward to a long-term relationship with the company," said Walter Bukowski, Vice President of Cornell Capital.
Since going public late last year, Megola (www.megolacorp.com) has been attracting ever increasing amounts of interest from the investment community and is in the process of greatly expanding both the scope of its offerings and its reach throughout the global marketplace. This is a continuance of the new business model that was previously launched this year, which the company believes could significantly boost its revenues.
The matters set forth in this press release are forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially. These risks are detailed from time to time in the company's periodic reports filed with the Securities and Exchange Commission including the company's Annual Report, Quarterly Reports and other periodic filings. These forward-looking statements speak only as of the date hereof. The company disclaims any intent or obligation to update these forward-looking statements.