Trans-Industries, Inc. Completes New Financing Arrangements
23 Agosto 2004 - 7:06PM
PR Newswire (US)
Trans-Industries, Inc. Completes New Financing Arrangements
ROCHESTER HILLS, Mich., Aug. 23 /PRNewswire-FirstCall/ --
Trans-Industries, Inc. (NASDAQ:TRNI), a manufacturer of lighting
products for buses, particle extraction systems, electronic
information systems and software, and related components for the
mass transit and highway markets, today announced the completion of
a new financing agreement with The Huntington National Bank,
replacing Comerica Bank as the Company's principal lender. On
August 18, 2004, the Company closed working capital and term loan
agreements with The Huntington National Bank. The Company used the
proceeds from the financing to repay its former lender, Comerica
Bank, in full. The new loan agreement with The Huntington National
Bank includes a working capital line of $6 million plus a secured
mortgage loan of $2 million. The note secured by the mortgage has a
five-year maturity, is amortized over 10 years with a final balloon
payment due at maturity and with an interest rate of 1.75 percent
above the bank's prime lending rate. The $6 million line of credit
is a three-year facility secured by all of the Company's assets
with an interest rate of 1.25 percent above the bank's prime
lending rate. As a condition precedent to closing, the bank
required that the Company receive an infusion of an additional $1.5
million through an equity investment. In an earlier investment of
$1.5 million made by The Harry E. Figgie, Jr. Trust (the Trust) on
March 4, 2004, the Trust had been granted an option to purchase
additional equity. The option would have required approval by the
Company's stockholders pursuant to certain National Association of
Securities Dealers, Inc. rules providing for qualitative listing
requirements applicable to securities traded on the Nasdaq National
Market and Nasdaq Small Cap Market. Due to the bank's closing
condition, the option transaction was amended and the Trust loaned
the Company $1.5 million in return for a subordinated convertible
note. The principal and interest due under the note is convertible
into shares of the Company's preferred stock and warrants to
purchase shares of the Company's preferred stock. Pursuant to the
NASD rules discussed above, the note is convertible only if the
conversion is approved by the Company's stockholders pursuant to
the Company's next annual meeting. About the Company The Company is
a leading provider of lighting systems and related components to
the mass transit market as well as a supplier of information
hardware and software solutions on Intelligent Transportation
Systems (ITS) and mass transit projects. ITS utilizes integrated
networks of electronic sensors, signs and software to monitor road
conditions, communicate information to drivers and help
transportation authorities better manage traffic flow across their
existing infrastructures. Forward-Looking Statements Except for
statements of historical fact, this press release includes certain
forward-looking statements based on management's estimate of trends
and economic factors in the markets in which the Company is active,
as well as the Company's business plans. We have used words such as
"may," "will," "expect," "anticipate," "believe," "estimate,"
"plan," "intend," and similar expressions in this press release to
identify forward-looking statements. In light of recent securities
law developments, including the "safe harbor" provisions of the
Private Securities Litigation Reform Act of 1995, the Company notes
that such forward-looking statements are subject to risks and
uncertainties. Accordingly, the Company's actual results may differ
from those set forth in such statements. Significant changes in
economic conditions, regulatory or legislative changes affecting
the Company, its competitors, or the markets in which it is active,
or changes in other factors may cause future results to vary from
those expected by the Company. The Company believes any
forward-looking statements it has made are based on current
management expectations and they are subject to risks and
uncertainties. These risks and uncertainties include, but are not
limited to the following: -- A further decline of economic
conditions in general and in the mass transit industry in
particular; -- Changes in customer requirements or reduced demand
for the Company's products and services; -- The inability of the
Company to successfully implement its restructuring program in the
informational systems business; -- Competitive factors (including
the introduction or enhancement of competitive products and their
successful introduction into the marketplace); -- Product pricing
decreases and component price increases that may result in
materially reduced gross profit margins for the Company's product;
-- The success of management's decision to change the Company's
business direction; -- Unforeseen increases in operating expenses;
and -- The inability to attract or retain management, sales, or
engineering talent. All of our forward-looking statements should be
considered in light of the above factors and all other risks
discussed from time to time in our filings with the Securities and
Exchange Commission. We do not undertake to update our
forward-looking statements to reflect future events or
circumstances. Visit Trans-Industries at
http://www.transindustries.com/ . DATASOURCE: Trans-Industries,
Inc. CONTACT: Kai Kosanke, Chief Financial Officer of
Trans-Industries, +1-248-852-1990 Web site:
http://www.transindustries.com/
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