WEST CHICAGO, Ill., April 2, 2004 (PRIMEZONE) -- M-Wave, Inc. (Nasdaq:MWAV), a domestic and international value-added service provider, and supply-chain manager of high performance circuit boards, is reporting a further update to the prior announcement this week of its intent to complete a receivables purchase facility through Silicon Valley Bank noted in its SEC filing of Form 12(b)-25 on March 30, 2004.
March 31, 2004 Silicon Valley Bank, N.A. (Bank) and the company completed the first of a two-step financing known as "Mini ABL" that will commence with an accounts receivable purchase facility. Under the facility, the company can sell to the bank, up to 85% of the face value of approved invoices, a maximum aggregate of $3.125 million. The cost of the facility includes a 1/2% one-time discount, plus the bank's prime rate plus 2.5 percent of interest periodically. The company and the bank signed the Mini ABL agreement March 31, 2004. The estimated initial proceeds to the company were $1.7 million.
A second financing is proposed to replace concurrently the Mini ABL, but it is subject first to both bank and M-Wave approval. It is estimated that any funding under the second facility will be possible on or about June 2004. The proposed financing is expected to range between $3 and $3.5 million. The revolving credit facility is based upon advances up to 85% of eligible accounts receivable with a $500,000 sub-limit on pre-sold inventory that does not exceed 33% of the total funding at any time.
"We are extremely pleased to report this important step in re-establishing credibility both in our industry and with our stakeholders," commented Jim Mayer, M-Wave's Chief Restructuring Advisor. Mayer went on to say, "Silicon Valley Bank really pushed hard to meet our demanding timetable, and it should prove to be a good financial partner both now and up the road ahead."
About M-Wave, Inc.
Established in 1988 and headquartered in the Chicago suburb of West Chicago, Illinois, 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 II(TM),and its supply chain management services including Virtual Manufacturing (VM) and the Virtual Agent Procurement Program (VAP) 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 Small Cap market under the symbol "MWAV." Visit the Company on its web site at www.mwav.com.
This news release contains predictions and other forward-looking statements that involve a number of risks and uncertainties. While this outlook represents our 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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