WEST CHICAGO, Ill., Aug. 3, 2004 (PRIMEZONE) -- M-Wave Inc. (Nasdaq:MWAV) today confirmed it had concluded the previously announced sale of 30,000 shares of the company's Series A, Convertible Preferred Stock to Mercator Momentum Fund LP, Mercator Momentum Fund III LP and Monarch Pointe Ltd. through Mercator Advisory Group LLC for aggregate proceeds after estimated expenses of $2.65 million.
On June 18 the company appealed Rule 4310(c)(2)(B) to Nasdaq's Hearing Panel that it not de-list M-Wave common shares since total book equity would exceed the minimum $2.5 Million if the Mercator transaction was closed, subject to Shareholder approval.
On July 28 the Mercator transaction was closed after shareholders approved it by majority vote on the previous day. The company now reports that its proforma, June 30 net equity will exceed $3.66 million, and it has notified Nasdaq of that fact. The company is awaiting final determination of the Hearing Panel with respect to continuation of its listing on the Small Caps market.
The company indicated that the Mercator funds would be utilized to pursue growth strategies both internally and externally in the near term.
About M-Wave Inc.
Established in 1988 and headquartered in the Chicago suburb of West Chicago, Ill., M-Wave is a value-added service provider of high performance circuit boards. The company's products are used in a variety of telecommunications and industrial electronics applications. M-Wave services customers like Federal Signal on digital products and Celestica -- Nortel and Remec with its patented bonding technology, Flexlink IITM, and its supply chain management services including Virtual Manufacturing and the Virtual Agent Procurement Program whereby customers are represented in Asia either on an exclusive or occasional basis in sourcing and fulfilling high volume and technology circuit board production in Asia through the company's Singapore office. The company trades on the Nasdaq national market under the symbol "MWAV." The company's web site is located at www.mwav.com.
About Mercator Advisory Group, LLC
Mercator Advisory Group, LLC, through its managed funds, specializes in direct equity investments in public companies. Its strategy is to invest in small- to mid-cap companies that show strong potential for both near- and long-term appreciation. The firm applies strict criteria in selecting its portfolio companies including a company's liquidity, fundamental strength with its operating space, and management's ability to map a path toward growth.
This news release contains predictions and other forward-looking statements that involve a number of risks and uncertainties. While this outlook represents the company's current judgment on the future direction of the business, such risks and uncertainties could cause actual results to differ materially from any future performance suggested above. Such risks and uncertainties include those factors detailed in the company's annual report on Form 10-K and other reports filed by the company with the U.S. Securities and Exchange Commission.
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