Bohemia, NY, Sept. 12, 2019 (GLOBE NEWSWIRE) -- via NEWMEDIAWIRE -- AmpliTech Group, Inc. (OTCQB: AMPG):
AmpliTech Group, Inc. (AMPG) is pleased to announce that it closed the acquisition of the assets of Specialty Microwave Corporation (SMW) today and has completed the audit work required to complete the acquisition.
As part of the closing process, AMPG and SMW agreed that AMPG would not acquire the freehold property at 120 Raynor Ave, Ronkonkoma (the “Property”)(SMW’s Headquarters) for $1.2mm (comprising $150k cash at close and a five year, $1.025mm Promissory Note) at close, and have instead entered into a 5 year lease on the Property with an option to buy the Property during the first two years of the lease term for $1.2mm and then at FMV for the remainder of the lease term.
In addition, in conjunction with closing the SMW transaction, the Company has entered into a new banking relationship with BNB Bank, based in Long Island, for three new credit facilities:
- A new, undrawn, $500 thousand credit facility (backed by accounts receivables and inventory on hand)(Credit Facility), with an initial floating interest rate of 6.25% per annum;
- A new, fully drawn, $1.0 million, seven year term loan with a fixed rate of 6.75% per annum (Term Loan) and
- A new, undrawn, $250 thousand equipment leasing facility (Equipment Facility).
The Credit Facility will replace the Company’s existing $250 thousand undrawn credit facility and the Term Loan will refinance the existing $332 thousand term loan, providing the Company with an additional $650 thousand in cash for working capital/growth initiatives. The Equipment Facility will be in addition to the existing leases the Company has over certain lab equipment, which will allow the Company to invest in capital equipment without tapping the Term Loan proceeds or the Credit Facility.
In commenting on the closing, Fawad Maqbool, CEO, said: “We are excited to begin a new era in the Company’s growth trajectory with the closing of the acquisition of SMW’s assets, including its goodwill, and the merging of our teams. We are anticipating significant synergies between the two businesses, which could solidify and grow in the coming quarters.”
About AmpliTech Group, Inc.
AmpliTech Group, Inc. designs, develops, and manufactures custom and standard state-of-the-art RF components for the Domestic and International, SATCOM, Space, Defense and Military markets. These designs cover the frequency range from 50 kHz to 40 GHz - eventually, offering designs up to 100 GHz. AmpliTech also provides consulting services to help with any microwave components or systems design problems. Our steady growth over the past 13+ years has come about because we can provide complex, custom solutions for nearly ANY custom requirements that are presented us. In addition, we have the best assemblers, wires, and technicians in the industry and can provide contract assembly of customers' own designs. Click here to view AmpliTech video. Website: http://www.AmpliTechinc.com
This release contains statements that constitute forward-looking statements. These statements appear in a number of places in this release and include all statements that are not statements 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 condition or results of operations; (iii) the Company's growth strategy and operating strategy. The words "may," "would," "will," "expect," "estimate," "anticipate," "believe," "intend," and similar expressions and variations thereof are intended to identify forward-looking statements. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, many of which are beyond the Company's ability to control, and that actual results may differ materially from those projected in the forward-looking statements as a result of various factors.
Fawad Maqbool, CEO, AmpliTech Group, Inc. (631) 521-7831