Liquidmetal(R) Technologies Announces $11.1 Million Funding Through the Organization and Capitalization of New Coatings Business Subsidiary
$10.2 Million in Convertible Notes Retired
Liquidmetal® Technologies, Inc. (OTCBB:LQMT) today announced the completion of an $11.1 million financing transaction in which it transferred the assets of its Liquidmetal Coatings division to a newly formed, newly capitalized subsidiary named Liquidmetal Coatings, LLC in a sale transaction. Going forward, Liquidmetal Coatings, LLC, referred to as “LMC,” will own and operate the Liquidmetal Coatings business as a separate entity in which Liquidmetal Technologies, Inc. will retain a 69.25% equity interest. John Kang, Chairman of Liquidmetal Technologies, commented, “The establishment of LMC formally recognizes the strength of our Liquidmetal coating technology and the resulting market leadership of our coatings in the protective coatings market. The establishment of LMC as an independent subsidiary will provide the resources and focus to further grow this business.”
LMC was funded through a $6.5 million subordinated debt and equity investment by C3 Capital Partners and a $5.0 million senior credit facility with Bank Midwest, N.A., both out of Kansas City, Missouri. The remaining 30.75% of the equity of LMC will be held by C3 Capital Partners, Larry Buffington (who will also serve as the President and CEO of LMC), and CRESO Capital Partners (the financial advisor in the transaction). The transaction resulted in $11.1 million in gross proceeds to Liquidmetal Technologies of which $10.2 million was used to retire convertible notes that were scheduled to become due in July and August 2007. The balance of the funds were used for transaction expenses and other debt. |
