very very nice...
Acrodyne Receives Capital Investment From Sinclair
Broadcast Group, Inc. and Implements New
Manufacturing Cost Reduction Program
BLUE BELL, Pa.--(BUSINESS WIRE)--Feb. 28, 2000--Acrodyne Communications, Inc. (Acrodyne), parent company of
Acrodyne Industries, Inc., a leading manufacturer and installer of UHF television transmission systems, announced today that it
was entering into a working capital loan agreement with Sinclair Broadcast Group, Inc. (Sinclair) (NASDAQ:SBGI - news).
The loan shall be a revolving $2.0 million line of credit and shall be evidenced by an unsecured convertible subordinated
demand note payable interest only on a monthly basis. The interest rate is fixed at 10.5% per annum and the note can be retired
at anytime without penalty. The note is convertible into shares of Acrodyne common stock at a price of $ 3.45 per share.
In addition, Sinclair exercised 75,000 warrants for the purchase of voting common stock at $3.00/share providing Acrodyne
with an additional $225,000 paid in capital.
Along with these financial transactions, Acrodyne has implemented new manufacturing procedures that will result in reductions
to its work force and in its manufacturing costs. It is anticipated that these cost cutting programs and work force reductions will
provide immediate improvement to the Company's performance.
In the immediate future, Acrodyne will be focusing on its new exclusive North American sales relationship with Rohde &
Schwarz, the world's foremost manufacturer of solid state transmitters, and on the introduction of a new technology high power
product line for shipment later this year.
A. Robert Mancuso, President and CEO of Acrodyne, stated, ``The confidence Acrodyne's major shareholder, Sinclair
Broadcast Group, Inc., is demonstrating through their continued financial commitment is because of the growth occurring in the
television transmission systems market and Sinclair's belief in Acrodyne's ability to achieve a significant share of that market.'
Acrodyne Communications, Inc., is a publicly traded company (NASDAQ:ACRO - news) and is an established and respected
manufacturer of television broadcast equipment for over three decades. Acrodyne is a leading producer of technically
advanced, high quality television transmitters.
This press release contains ``forward-looking statements' concerning future expectation, plans or strategies that involve a
number of risks and uncertainties. The Company wishes to caution readers that certain factors may have affected the
Company's actual results and could cause results for subsequent periods to differ materially from those expressed in any
forward-looking statements to reflect subsequently occurring events or circumstances.
Contact:
Ellen J. Rainey
1-215-542-7000, extension 137 |
