UAT Group, Inc. announced that it has reached an agreement with a lending partner to support the growth of its subsidiary H2O Processing. The private equity partner has provided the necessary strategic growth capital to support the production of its iron mitigation systems that remove metal ion from crude oil. Initial systems have entered production and are expected to be delivered to customer sites over the next several weeks.

The obligations of the debt financing will be paid from the proceeds of production. The timing of the first payment will allow for the units to be constructed, delivered, placed into operations, and generate cash flow before that first payment is due. Notably the Company will be able to fulfill the requirements from more traditional financing sources as a result of this financing.

H2O Processing went through underwriting with The Bancorp SBA program in May of this year which required minimum revenues totaling three months. H2O Processing expects to submit documentation required by SBA after three months of revenues at the end of the first quarter. The Company will seek additional funding, sufficient to support manufacturing operations as well as to support production of its water treatment systems over the next four months.