Financing Terms Agreed for the Acquisition of Blue Star and an Agreement in-Principle with a New Lender to Significantly Reduce the Amount due our Primary Lender.
Anaheim, CA / ACCESSWIRE / November 20, 2014 / M Line Holdings, Inc. (OTC Pink: MLHC "M Line" or the "Company"), is pleased to announce that it has finalized the financing for the acquisition of Blue Star Machinery. Although the purchase price was agreed as 3,330,000 shares of M line stock (based on a 10 cents market value) M Line also agreed to pay off all the debt secured by inventory and fixed assets and to provide working capital. These funds have now been secured. M Line expects to close on or before December 31, 2014.
Furthermore M Line has agreed terms in principle to refinance a significant portion of its primary lenders debt. This refinancing plus a new ABL credit facility on which M Line is still concluding is expected to be finalized before calendar year end. This will then clear the indebtedness obligation to our primary lender. Concurrently
the Company is putting significant resources to make sure our audit of our 10-K and 10-Q are completed as soon as possible.
Bruce Barren, CEO of M Line, commented: "These two milestones will have a significant effect on management's primary focus: the expansion of revenue and EBITDA through strategic acquisitions and the reduction of our capital cost. Both will have a positive effect on shareholder value and put us in a position to move forward with our growth plans for the Company. Our philosophy is to WIN. The Blue Star acquisition is only the first step to accelerate revenue and EBITDA by some $9 million and $1.5 million respectively. More acquisitions are targeted and we have already announced the second one which is on course to further expand our corporate values."
Tony Anish, COO of M Line, stated: "The final documents for the acquisition of Blue Star are close to being completed so the commitment for funding from our investment banking relationship (per our press release in ) is timely and will mean we can very shortly concentrate on closing The Byran Company, Inc the second acquisition previously announced. We are determined to accelerate revenue and EBITDA expansion so that we can gain a better interpretation in the market place of our corporate capabilities and performance. Our objectives continue to be capitalized maximization of the current positive direction of the aerospace industry, both in commercial and defense."
About M Line Holdings, Inc.
M Line is a leading manufacturer of products, assemblies and services to the precision high tech segment of both the aerospace and medical industries as well as selling high end pre-owned Japanese Computer Numerically Controlled ("CNC") Machine Tool Equipment with key customers that include Panasonic Avionics, UTC Aerospace Systems, Beckman Coulter, BE Aerospace and a strategic alliance with Structural Integrity Engineering.
For more information on M Line see our website at http://www.mlineholdings.com/
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This press release may contain forward-looking information within the meaning of Section 21E of the Security Exchange Act of 1934, as amended (the Exchange Act), including all statements that are not statement of historical fact regarding the intent, belief or current expectations of the company, its directors or its officers with respect to, among other things: (i) the company's financing plans; (ii) trends affecting the company's financial conditions or results of operations; (iii): the company's growth strategy and operating strategy; and (iv) the declaration and payment of dividends.
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For further information contact
Tony Anish
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SOURCE: M Line Holdings, Inc.