SOMERSET, N.J., Sept. 19 AWT, Inc.(Pink Sheets: AWTM), is pleased to announce that it has signed agreements withWakabayashi Fund, LLC for $1.0 million financing that is designated foracquisition use.
"Our discussions with Wakabayashi have been for a straight debt piece, butthe financing will probably come in as a hybrid of debt and equity. Thestructure of this financing is not set, but I can assure the market, we willnot accept terms that will be toxic to our present investors and the continuedgrowth of the Company," commented Christopher J. Neill, CEO. Furthering hiscomments, "Our debt service coverage on a short or long-term debt piece willbe substantial, just north of 3 to 1."
The Company until recently had relied on founders and investors monies forproject financing, and as a result of moving from the private sector to thepublic markets, now has access to institutional financing.
"Bringing both sales and financing together, this year we are expandingbeyond the out-of-pocket financing and the one-off market for sales, to reachout to customers via large distribution contracts and to the doctors andnurses from what is called 'trusted advisor' sales," says Mr. Neill. "We arevery appreciative of the support our investors have given us, and because ofthis, our present in-process acquisitions are coming together quickly.
AWT's CFO, Donald Malter stated, "A long term relationship withWakabayashi Fund, LLC will not only benefit the overall shareholder value inthe coming months and next fiscal year, but through out the first part of ourfive year build out. We look forward to a continued working relationship."
Wakabayashi Fund, LLC may invest on a principal basis as well as act as aninstitutional intermediary to procure capital for profitable small-capcompanies. They provide consulting experience to help structure a financing sothat owners and managers continue to lead their enterprises and participate inthe rewards of future growth, while at the same time achieving the liquidityto diversify their personal holdings and fund the next round of companyexpansion.
Company website: http://www.wakabayashifund.com/
ABOUT AWT INC
AWT Inc, headquartered in Somerset, New Jersey, with Distribution centersin the USA and Saudi Arabia, is a rapidly expanding durable medical equipmentand supply company. It distributes state-of-the-art medical equipment to thehealthcare industry, as well as general supplies.
AWT Inc is committed to a more traditional personal service commitment tohealthcare and cost efficiencies for clients, providing superior service andproducts to the healthcare world at the lowest possible price and withdelivery times superior to any in the industry. It is equally committed toalways exceeding customer expectations and to increasing shareholder value.
CAUTIONARY STATEMENT ABOUT FORWARD-LOOKING STATEMENTS
The acquisition financing described in this press release has not beencompleted for AWTM at the time of writing. The agreement calls for thefinancing to be raised on a best efforts basis through Institutional Investorsprovided by Wakabayashi and possibly through a direct investment fromWakabayashi Fund, LLC. It is the intention of AWTM to work with WakabayashiFund to complete this financing on a best efforts basis, at its earliestpossible opportunity. If the financing is not completed, no assurances as tothe financial viability of the company are possible. No guarantee can be madeby the company as to if the acquisitions mentioned herein will actually takeplace and close. If the acquisitions do not close where AWTM has purchased,acquired, or merged with said companies, actual results could differmaterially from those projected in the forward looking statements. This pressrelease contains "forward-looking statements," which are statements related tofuture, n