Micron Solutions, Inc. Announces New $7,000,000 Credit Facility
July 07 2021 - 4:15PM
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 requiring
precision machining and injection molding, announced that Micron
Products, Inc. entered into a new three year $7,000,000 Loan and
Security Agreement (the “Agreement”) with Berkshire Bank, a
Massachusetts banking corporation, on June 30, 2021, replacing the
Company’s previous lender.
The Agreement includes a revolving line of
credit of up to $5.0 million and a capital expenditures line of
credit of $2.0 million, which lines are secured by the assets of
the Micron Products and Micron Solutions. The purpose of the
financing is to provide additional liquidity to be used for future
working capital needs and capital expenditures as well as for
general corporate purposes subject to the terms and conditions of
the Agreement. Under the terms of the Agreement, the Company will
repay its outstanding subordinated debt in the amount of
$500,000.
“We are pleased to announce our agreement with
Berkshire Bank. We recently announced that we had completed the
sale and leaseback of our main manufacturing facility, which
allowed us to clear our balance sheet of bank debt from our
previous lender. This new lending agreement provides us with
additional capital availability to take advantage of opportunities
to expand our business and further improve our operating results.
Berkshire Bank’s Asset Based Lending and Treasury teams worked
diligently with us to tailor the facility for Micron and we are
grateful for the opportunity to partner with them over the coming
years,” commented CEO Bill Laursen.
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 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.
Therefore, actual results may differ materially from what is
expressed in or implied by these forward-looking statements. The
factors that could cause our actual results of operations,
financial condition, performance or achievements to be affected
materially include, but are not limited to, 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 any 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; 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; and the amount and timing of investments in capital
equipment, sales and marketing, engineering and information
technology resources. The Company assumes no obligation to update
the information included in this press release, whether as a result
of new information, future events or otherwise. More information
about the Company's financial results is included in the Company's
Quarterly Report for the quarter ended March 31, 2021 and our most
recent Annual Report for the fiscal year ended December 31, 2020,
which are posted at https://www.otcmarkets.com/stock/MICR/ and
https://micronsolutions.com/.
For more information, contact:
Mr. William LaursenChief Executive Officer978.345.5000
Micron Solutions (AMEX:MICR)
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