Micron Solutions, Inc. Announces New $7,000,000 Credit Facility
FITCHBURG, Mass., July 07, 2021 (GLOBE NEWSWIRE) -- 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 Laursen
Chief Executive Officer