Micron Solutions, Inc. Enters Sale-Leaseback Agreement
August 25 2020 - 4:34PM
Micron Solutions, Inc. (OTCQB: MICR) (the “Company”), a diversified
contract manufacturing organization, through its wholly-owned
subsidiary, Micron Products, Inc., producing highly-engineered,
innovative components and assemblies requiring precision machining
and injection molding, announced entry into a purchase and sale
agreement for the sale and leaseback of its main manufacturing
facility.
Upon the closing of the sale and leaseback,
Micron anticipates receiving proceeds of approximately $3.8
million. The Company expects to use the proceeds from the sale to
reduce bank borrowings on its existing credit facility. The
consummation of the sale and leaseback is subject to extensive due
diligence, customary closing conditions and bank approval. Subject
to the satisfaction of these conditions, we expect to close this
transaction during the fourth quarter of 2020. Micron will continue
to occupy the Fitchburg, MA facility under a long term, triple net,
lease.
CEO Bill Laursen commented that “The
sale-leaseback transaction will strengthen our balance sheet and
enhance financial stability, which is another step in our overall
strategy to support growth and enhance our focus as a best in class
contract manufacturer.”
About Micron Solutions, Inc.
Micron Solutions, Inc., through its wholly-owned
subsidiary, Micron Products, Inc., is a diversified contract
manufacturing organization that produces highly-engineered,
innovative medical device components requiring precision machining
and injection molding. The Company also contract manufactures
components, devices and equipment for military, law enforcement,
industrial and automotive applications. In addition, the
Company is a market leader in the production and sale of
silver/silver chloride coated and conductive resin sensors used as
consumable component parts in the manufacture of integrated
disposable electrophysiological sensors. The Company’s
strategy for growth is to build a best-in-class contract
manufacturer with a specialized focus on plastic injection molding
and highly-engineered medical devices and components requiring
precision machining.
The Company routinely posts news and other important information
on its website: http://www.micronsolutions.com
Safe Harbor Statement
Forward-looking statements made herein,
including but not limited to, the terms, conditions and timing on
closing the sale leaseback transaction, are based on current
expectations of Micron Solutions, Inc. (“our” or the “Company”)
that involve a number of risks and uncertainties and should not be
considered as guarantees of future performance. The factors that
could cause actual results to differ materially include our ability
to obtain and retain order volumes from customers who represent
significant proportions of net sales; our ability to maintain our
pricing model, offset higher costs with price increases and/or
decrease our cost of sales; variability of customer delivery
requirements; the level of and ability to generate sales of higher
margin products and services; our ability to manage our level of
debt and provisions in the debt agreements which could make the
Company sensitive to the effects of economic downturns and limit
our ability to react to changes in the economy or our industry;
failure to comply with financial and other covenants in our credit
facility; the impact on the Company’s financial results due to
economic uncertainty and disruption including, but not limited to,
recent events concerning COVID-19; changes to regulations governing
the forgiveness of the Company’s PPP Loan; reliance on revenues
from exports and impact on financial results due to economic
uncertainty or downturns in foreign markets; volatility in
commodity and energy prices and our ability to offset higher costs
with price increases; continued availability of supplies or
materials used in manufacturing at competitive prices; variations
in the mix of products sold; continued availability of supplies or
materials used in manufacturing at competitive prices; the
amount and timing of investments in capital equipment, sales and
marketing, engineering and information technology resources; and
the ability to satisfy the conditions of and timing of closing the
sale leaseback transaction. Information about the Company's
financial results is included in the Company's most recent Annual
Report on Form 10-K, and the Company’s Quarterly Report for the
period ending June 30, 2020, which is posted at
https://www.otcmarkets.com/stock/MICR/ and
https://micronsolutions.com.
For more information, contact:
Mr. Wayne CollChief Financial Officer978.345.5000
Micron Solutions (AMEX:MICR)
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