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Admor Memory defaults, sees no new cash
IRVINE, Calif., Feb 24 (Reuters) - Admor Memory Corp. said Wednesday that it defaulted on a loan agreement with its lender,
Coast Business Credit, after it failed to secure a $5 million cash infusion from an investor.
If new capital is not found, Admor will not be able to sustain itself as a going concern, the company said. It added that it has no active new capital options.
The computer memory products maker has been trying to raise new capital to keep itself alive since October, when NetGateway Inc. (OTC BB:NGWY - news)
decided against acquiring Admor.
NetGateway, which has plans to apply for Nasdaq listing, then agreed to make an $800,000 investment in the company and sign a long-term contract allowing
Admor to continue selling products on NetGateway's Internet commerce service.
Admor said that its defaulted line of credit with Coast Business is secured by all of the company's assets.
Shares of Admor have bounced between a 52-week high of $4.50 and a low of $0.045. |
