If things are so good at GUMM, why would they bother?: "Matrixx Initiatives, Inc. Announces Extension of Line of Credit
2003-08-19 10:30 (New York)
Comerica Bank Extends Term by Two Years, Reduces Rates
PHOENIX, Aug. 19 /PRNewswire-FirstCall/ -- Matrixx Initiatives, Inc.
(Nasdaq: MTXX), developer and distributor of the expanded line of Zicam(R)
products, today announced that the Company has secured a two-year extension of
its $2.5 million credit facility with Comerica Bank. Under the new credit
facility, Matrixx secured a substantial improvement in its borrowing ability,
as well as a reduction in its borrowing rate.
"We are very pleased by our ability under the extension to borrow the full
$2.5 million under the credit facility at a reduced interest rate and without
the limitations on our accounts receivable and inventory levels that existed
under the original facility. Because of the seasonality of our business, this
represents a significant improvement in our financing flexibility over the
original facility. In addition, our financial covenants under the extended
facility have been improved from those in the original facility," said William
Hemelt, executive vice president and chief financial officer for Matrixx.
"We believe the two-year Comerica commitment under these improved terms is a
tangible result of Matrixx's continuing financial improvement."
About Matrixx Initiatives, Inc.
Matrixx Initiatives, Inc. is engaged in the development, manufacture and
marketing of innovative drug delivery systems for over-the-counter OTC
pharmaceuticals. Zicam, LLC, its wholly-owned subsidiary, produces, markets
and sells Zicam(R) Cold Remedy nasal gel, a patented, homeopathic remedy that
has been clinically proven to significantly reduce the duration and severity
of the common cold. In studies published in the October 2000 issue of ENT -
Ear, Nose and Throat Journal, and separately in the January 2003 issue of QMJ:
An International Journal of Medicine, the Zicam Cold Remedy product was shown
to reduce significantly the duration of the common cold. The Company also
manufactures and markets a full line of Zicam brand pharmaceuticals, including
Zicam Cold Remedy Swabs; Zicam Kids Size Cold Remedy Swabs; Zicam Extreme
Congestion Relief; Zicam Sinus Relief; and Zicam Nasal Moisturizer. For more
information regarding Matrixx products, go to www.zicam.com . To find out
more about Matrixx Initiatives, Inc. (Nasdaq: MTXX), visit our website at
www.matrixxinc.com . For additional information, contact William Hemelt,
executive vice president and chief financial officer, 602-387-5353,
whemelt@matrixxinc.com, or Lynn Romero, investor relations, at 602-387-5353,
lromero@matrixxinc.com. Matrixx is located at 2375 East Camelback Road, Suite
500, Phoenix, Arizona 85016.
About Comerica
Comerica Incorporated (NYSE: CMA) is a multi-state financial services
provider headquartered in Detroit, with banking subsidiaries in Michigan,
California and Texas, banking operations in Florida, and businesses in several
other states. It is among the 20 largest banking companies in the United
States, with $59 billion in total assets as of June 30, 2003, and first among
the top 50 U.S. bank holding companies in commercial loans as a percent of
total assets.
Matrixx Initiatives, Inc. Forward Looking Statement Disclaimer:
This news release contains forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995, including statements
regarding Matrixx Initiatives, Inc.'s possible use of its credit facility to
address seasonality issues and the effect of the credit facility on the
Company's financing flexibility. These forward-looking statements are based
on the Company's expectations and are subject to a number of risks and
uncertainties, many of which cannot be predicted or quantified and are beyond
the Company's control. Future events and actual results could differ
materially from those set forth in, contemplated by, or underlying the
forward-looking statements. Factors that could cause actual results to differ
materially from the Company's expectations include the possibility that sales
of the Company's products will not be as strong as expected or that the
possibility that the development and introduction of new products by the
Company will not be successful, in either case giving rise to the Company's
need to draw on the credit facility to a greater extent than anticipated.
Other factors that could cause actual results to differ materially from the
Company's expectations are described in the Company's reports filed pursuant
to the Securities Exchange Act of 1934.
SOURCE Matrixx Initiatives, Inc.
-0- 08/19/2003
/CONTACT: William Hemelt, executive vice president and chief financial
officer, +1-602-387-5353, whemelt@matrixxinc.com, or Lynn Romero, investor
relations, +1-602-387-5353, lromero@matrixxinc.com, both of Matrixx
Initiatives, Inc./
/Web site: zicam.com /
/Web site: matrixxinc.com /
(MTXX CMA)
CO: Matrixx Initiatives, Inc.; Comerica Incorporated; Comerica Bank
ST: Arizona
IN: FIN MTC
SU:
-0- Aug/19/2003 14:30 GMT |
