M Line Holdings, Inc., Closes Institutional Financing, With Initial Funding of
$1,700,000 From a $10,000,000 Line of Credit
TUSTIN, Calif., May 3, 2013 (GLOBE NEWSWIRE) -- M Line Holdings, Inc.
(OTCQB:MLHC), ("M Line" or the" Company"). M Line is pleased to announce that
it's new loan facility agreement with TCA Global Credit Master Fund L.P has
now funded. The first tranche of the facility is $1,700,000. This initial
tranche pays off more expensive financing for Eran Engineering, Inc. ("Eran")
and Elite Machine Tool Company ("Elite") and will result in a minimum of
$300,000 per annum savings straight to the bottom line profit.
The total Line of Credit is for $10,000,000 and the Company can obtain,
dependent upon various criteria, multiple additional fundings in the future.
The facility bears interest initially at 18% per annum and is secured by the
receivables and inventory of Eran and CNC machine tool inventory of Elite.
Additional fees include a 3% facility fee and $200,000 in preferential shares
in the Company that can be repurchased by the Company in six months for the
same dollar amount.
The Company plans for the proceeds after loan repayments are twofold; first to
increase inventory of CNC machines at Elite resulting in increased revenues
and secondly to support the anticipated growth in revenues at Eran
Said Tony Anish, Managing Director, "At last we have found a funding partner
that will not only support the planned growth but will also enable us to
exceed our expectations for the Company. With the closing of this loan, the
Directors believe we can now support all the Companies' growth requirements
for the foreseeable future."
About M Line Holdings, Inc.
M Line Holdings, Inc. (OTCQB:MLHC) acquires fundamentally-sound companies that
are market accepted, scalable and demonstrate a quantifiable value proposition
when properly managed. Currently our focus is in the aerospace and medical
manufacturing and precision equipment businesses that, with the addition of
some new products and markets, can exhibit strong growth in both revenue and
profits. MLHC lends its operational support, management approach, strategic
partnerships, relationships and financial resources to these companies to
reduce costs and expand sales, which allows these companies to achieve
exceptional performance over time. MLHC currently operates two wholly owned
subsidiaries that are positioned for growth; Eran Engineering, Inc. and E.M.
Tool Company, Inc. dba Elite Machine Tool Company. Eran is AS9100 REV C
certified and engineers/manufactures precision metal products and services to
such major customers as Panasonic, Rockwell Collins, Driessen, UTC Aerospace
Systems and Iris Medical.Elite sells pre-owned machine tool equipment that
has been refurbished in Elite's facility to customer specifications.
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Forward Looking Statements
This news release contains certain "forward- looking statements."
Forward-looking statements are based on current expectations and assumptions
and are inherently subject to risks and uncertainties, some of which cannot be
predicted or quantified, and many of which are beyond the Company's control.
The forward-looking statements are also identified through the use of words
"believe," enable," "may," "will," "could," "intends," "estimate,"
"anticipate," "plan," "predict" "probable," "potential," "possible," "should,"
"continue," and other words of similar meaning. Actual results could differ
materially from these forward-looking statements as a result of a number of
risk factors detailed in the Company's periodic reports filed with the SEC.
Given these risks and uncertainties, investors are cautioned not to place
undue reliance on such forward-looking statements and no assurances can be
given that such statements will be achieved.
CONTACT: Tony Anish, M Line Holdings, Inc.
Mark Gilbert, Magellan Fin, LLC
M Line Holdings, Inc. Logo
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