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Press Releases
MILESTONE SCIENTIFIC EXTINGUISHES $1.3 MILLION IN DEBT
PISCATAWAY, N.J. – (PR NEWSWIRE) – January 4, 2010 – Milestone
Scientific Inc. (OTCBB:MLSS), the recognized leader in advanced injection
technologies, today announced that it has entered into an agreement to
extinguish $1.3 million of its outstanding debt in exchange for 822,000
shares of its common stock.
On June 28, 2007, Milestone secured a $1 million
line of credit from a longstanding shareholder of the Company. The line
of credit was amended in 2008 to $1.3 million. Borrowings bore interest
at 6% per annum, with one year’s interest at 1% payable in advance on each draw. The
full amount of the line of credit and amendment, $1.3 million, had been
drawn as of September 30, 2009. The outstanding debt due the investor
was originally eligible for conversion into equity at a price of $0.26
per share. However, pursuant to a new agreement entered into with the
investor on December 28, 2009, the debt has been converted into equity
at a price per share of $1.58. As a consequence of the debt conversion,
Milestone’s balance sheet will no longer reflect the note as a
current liability, thus increasing total stockholders’ equity from
$770,765 at September 30, 2009 to $2.07 million.
Leonard Osser, Chief Executive
Officer of Milestone, noted, “We
are very pleased to announce the conversion of $1.3 million in current
debt to equity. This transaction significantly strengthens our balance
sheet, eliminates further interest accrual and positions our Company
to fully capitalize on our anticipated growth opportunities in the coming
year. I’d like to again thank our trusted shareholder for standing
by Milestone over many years and for his generous support and demonstrated
commitment to our Company’s long term success.”
The certificates for the shares issued in connection with the debt conversion
will bear a restrictive legend. Milestone Scientific is relying on the ‘exempt
security’ provisions set forth in Section 3(a)(9) under the Securities
Act of 1933, as amended, in issuing the shares in the debt conversion,
as well as the transactional exemptions provided by Sections 4(2) and
4(6) of the Act and Regulation D. The shares of common stock issued in
connection with the debt conversion represent approximately 5.8% of the
Company’s total outstanding shares immediately preceding the transaction.
About Milestone Scientific Inc.
Headquartered in Piscataway, New Jersey, Milestone Scientific is engaged
in pioneering advanced computer-controlled injection technologies for
the medical and dental markets; and currently sells its award-winning
products through a global distribution network serving North America,
Asia, Africa and Europe. For more information on the STA System and
other innovative Milestone products, please visit the Company's web
sites found at www.milestonescientific.com and www.STAis4U.com.
Safe Harbor Statement
This press release contains forward-looking statements
regarding the timing and financial impact of Milestone's ability to implement
its business plan, expected revenues and future success. These statements
involve a number of risks and uncertainties and are based on assumptions
involving judgments with respect to future economic, competitive and market
conditions and future business decisions, all of which are difficult or
impossible to predict accurately and many of which are beyond Milestone's
control. Some of the important factors that could cause actual results
to differ materially from those indicated by the forward-looking statements
are general economic conditions, failure to achieve expected revenue growth,
changes in our operating expenses, adverse patent rulings, FDA or legal
developments, competitive pressures, changes in customer and market requirements
and standards, and the risk factors detailed from time to time in Milestone's
periodic filings with the Securities and Exchange Commission, including
without limitation, Milestone's Annual Report for the year ended December
31, 2008. The forward looking-statements in this press release are based
upon management's reasonable belief as of the date hereof. Milestone
undertakes no obligation to revise or update publicly any forward-looking
statements for any reason.
FOR MORE INFORMATION, PLEASE CONTACT:
Elite Financial Communications Group
Dodi Handy, President and CEO (Twitter: @dodihandy)
For Media Inquiries: Kathy Addison, Director, Elite Media Group (Twitter:
@kathyaddison)
407-585-1080 or via email at mlss@efcg.net
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