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TX Rail Products, Inc. Secures Credit Line Expansion at Attractive Terms to Accelerate Growth

Written by Customer Service on . Posted in Public Companies.

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 $500,000 to $1 million and was secured at an attractive and competitive interest rate of just 1% above prime. The facility provides the company with additional financial flexibility to further strengthen its supply chain and meet increasing customer demand for its rail products.

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        

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