TUSTIN, Calif., April 2, 2013 (GLOBE NEWSWIRE) -- M Line Holdings, Inc. (OTCQB:MLHC), ("M Line or the Company"). M Line is pleased to announce that it has entered into a loan facility agreement. The first tranche of the facility will provide initial Gross proceeds of $1,700,000 to the Company.
In committing to this loan which includes a revolving line, the Company can obtain, dependent upon various criteria, multiple additional fundings in the future.
The facility will bear interest initially at 18% per annum. The facility will be secured by the receivables and inventory of Eran Engineering and inventory of Elite Machine Tool. Additional fees include a 3% facility fee and $150,000 worth of preferential shares in the Company that can be repurchased by the Company in six months for the same amount.
The Company plans to use the net proceeds from the facility to increase inventory of CNC machines at Elite resulting in increased revenues and to support the anticipated increase in revenues at Eran Engineering.
Tony Anish, Chief Operations Officer, added that "We are delighted to have signed the financing term sheet. We have been trying to refinance the Company for some time and this facility will enable the Company to meet or exceed its business plan. With the closing of this loan the future growth of the Company looks very positive."
About M Line Holdings, Inc.
M Line Holdings, Inc. (OTCQB:MLHC) acquires fundamentally-sound companies that are market accepted, scalable and demonstrate a quantifiable value proposition when properly managed. Currently our focus is in the aerospace and medical manufacturing and precision equipment businesses that, with the addition of some new products and markets, can exhibit strong growth in both revenue and profits. MLHC lends its operational support, management approach, strategic partnerships, relationships and financial resources to these companies to reduce costs and expand sales, which allows these companies to achieve exceptional performance over time. MLHC currently operates two wholly owned subsidiaries that are positioned for growth; Eran Engineering, Inc. ("Eran")and E.M. Tool Company, Inc. dba Elite Machine Tool Company ("Elite"). Eran is AS9100 REV C certified and engineers/manufactures precision metal products and services to such major customers as Panasonic, Rockwell Collins, Driessen, UTC Aerospace Systems and Iris Medical. Elite sells pre-owned machine tool equipment that has been refurbished in Elite's facility to customer specifications.
FOLLOW US ON FACEBOOK & TWITTER
Forward Looking Statements
This news release contains certain "forward-looking statements." Forward-looking statements are based on current expectations and assumptions and are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified, and many of which are beyond the Company's control. The forward-looking statements are also identified through the use of words "believe," enable," "may," "will," "could," "intends," "estimate," "anticipate," "plan," "predict" "probable," "potential," "possible," "should," "continue," and other words of similar meaning. Actual results could differ materially from these forward-looking statements as a result of a number of risk factors detailed in the Company's periodic reports filed with the SEC. Given these risks and uncertainties, investors are cautioned not to place undue reliance on such forward-looking statements and no assurances can be given that such statements will be achieved.