FORT WASHINGTON, Pa., April 29, 2004 (PRIMEZONE) -- ImageMax, Inc. today announced it has completed a transaction with its subordinated debt holders, TDH III, L.P., LVIR Investors Group, LP and Robert E. Drury to provide the Company with $1,000,000 in additional subordinated debt financing and to extend the existing subordinated debt maturity from April 30, 2004 to April 30, 2005 with an automatic one year extension thereafter to April 30, 2006 in connection with future bank financing.
In connection with this new capital infusion, the Company has also reached an agreement with its senior lenders, Commerce Bank, NA and FirsTrust Bank to extend the existing revolving credit line. The revolving credit line will initially be $5.5 million and the outstanding principal will be due and payable on March 31, 2005.
J. B. Doherty, Chief Executive Officer, commented, "This transaction completes the refinancing the Company needed to provide financial stability for the foreseeable future. It replenishes working capital, funds capital expenditures, and addresses certain other needs, and will allow management to focus entirely on the business operations. As a result of the reduced expenses, most notably due to the deregistration of the common stock (announced January 8, 2004), the Company is enjoying positive cash flow from operations and expects that to continue. The investors continue to have confidence in the Company and its management and look forward to seeing improving financial results through the remainder of 2004."
ImageMax is a national provider of document management services and products that enable clients to capture, index, and retrieve documents across a variety of media, including the Internet through its web-enabled document storage and retrieval product, ImageMaxOnline. The Company has a national sales force and operates 15 production facilities across the United States.
Statements in this press release which are not historical fact, such as with respect to the Company's strategic and operating plans, its ability to establish new customer and product opportunities, manage costs, achieve cost savings, make its debt service payments, and meet its financial covenants, the Company's future revenues, profitability, operating results and cash flows, and the identification or consummation of any particular transaction or strategic outcome, are forward-looking statements that involve risk and uncertainty. Accordingly, there is no assurance that the results in the forward-looking statements will be achieved.