I wanted to give an update on the situation regarding ETS. Pinnacle made a loan to ETS, secured by a security interest in substantially all of ETS’s assets. Because ETS has defaulted on the loan, and Pinnacle has received a judgment against ETS for more than $3 million, Pinnacle is conducting a foreclosure sale of substantially all of ETS’s assets.
We have already contacted several potential interested parties directly. Parties interested in bidding for the assets can contact me for additional information. Interested parties must submit certain qualifying information by May 9th , 2025 and initial bids on May 11, 2025. The foreclosure sale for qualified bidders is scheduled for May 12th , 2025 at 10:00am. Pinnacle intends to credit bid its debt, and is reserving the right to credit bid the full amount of its debt, though Pinnacle believes it is substantially under secured. If Pinnacle is the winner of the auction and acquires ETS’s assets, we will be willing and able to support current ETS customers from a sales and service perspective. Pinnacle is and will remain a separate, unaffiliated entity from ETS with entirely different management, operations, and business philosophy, and will not be assuming any liabilities of ETS.
Fluxwerx Manufacturing is a new start-up company ready to lead the sales and support of the Pinnacle Stainless, ETS, and Delta product lines should Pinnacle be the winning bidder. Fluxwerx Manufacturing consists of myself and Steve Mueller. As many of you know, I was the founder and CEO of Pinnacle Stainless from inception until Pinnacle’s assets were purchased by ETS in 2021. Steve Mueller was the founder and CEO of Mile High Labs. Post-acquisition, neither Pinnacle nor myself had any affiliation or involvement in the business of ETS, except as secured lenders that were forced to exercise remedies. We are excited to bring innovation and a high level of engineering and process driven solutions to the industry.
If you have any questions, feel free to ask.
Thanks,
Zach Harris, Pinnacle Stainless
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