SCOTTSDALE, Ariz., Oct. 14 /PRNewswire-FirstCall/ -- Motion DNA Corporation , which has been in negotiation with Formula 51-2 LLC since the defeated buyout attempt four months ago, has reached an accord with Jamir Miller, Formula's Managing Partner, to provide initial funding of $1,000,000 to Motion DNA while negotiations continue. This line of credit carries an interest-only provision for one year, which can be eradicated by conversion into 2,000,000 shares of Restricted Stock at Fifty-cents ($.50) per share, just below the pre split price of sixty-cents ($.60) per share. Dilution will be minimized in the event that Miller opts to convert the debt to equity. The company has agreed to retire shares equal to the number of shares converted by Miller should he choose the equity conversion option. Under the terms of the agreement, Miller may choose to convert all or a portion of the debt accumulated to equity.
Desiring to stay in the hunt for control of Motion DNA, Mr. Miller offered the capital to entice the board of directors to agree to an extension from his original deadline of October 14th. The extension gives Formula 51-2 an additional 90 days to make a decision as to how the MTDX/51-2 business arrangement would unfold. Negotiations will continue, as Motion DNA works to implement its new business plan with the additional capital. Company officials will release a detailed plan within the next 5 days outlining for shareholders how the line of credit will be spent to generate revenues and exposure for the company.
"Mr. Miller recognized, that the company was in need of capital and we desired to either end talks with his company to open the door for other suitors or come up with a solution to our immediate cash needs," stated Zig Ziegler, Founder/CEO of Motion DNA. "This is excellent start to what we envision will be a very lucrative business relationship between Formula 51-2 and our Company. We will continue to negotiate in good faith to achieve terms and conditions with the ultimate goal of financial independence and enhancing shareholder value."
Ziegler added, "This access to this capital comes at a crucial time for Motion DNA as we are intensifying our marketing campaign."
"We believe Motion DNA has something needed in the sports and medical marketplace with its technology and believe it is only a matter of time before Motion DNA testing is a household name in each market," said Miller, commenting on this transaction. "We want to be apart of this in some way. We are excited to see how Motion DNA's relationships develop with the NFL and Major League Baseball. We are in a position to infuse a lot of capital into the company, and I've agreed to introduce the company to the renowned sports agent Leigh Steinberg in hopes that Steinberg may be interested in helping facilitate professional contracts.
Motion DNA Corporation provides diagnostic testing for individual athletes, medical professionals and sports organizations. Motion DNA's biomechanical analyses provides customers with solutions for preventing injuries and improving physical performance levels. Motion DNA's analyses are only designed to identify physical limitations related to strength, mobility, coordination and technique. The athlete, sports coach, athletic trainer, strength and conditioning coach or other medical professional must work together to make improvements specific to the affected area.
For more visit: www.motiondnacorp.com.
Mr. Zig Ziegler, President
AGORA Investor Relations
This press release may contain forward-looking statements covered within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements relate to, among other things, plans and timing for the introduction or enhancement of our services and products, statements about future market conditions, supply and demand conditions, and other expectations, intentions and plans contained in this press release that are not historical fact and involve risks and uncertainties. Our expectations regarding future revenues depend upon our ability to develop and supply products, which we may not produce today and that meet defined specifications. When used in this press release, the words "plan," "expect," "believe," and similar expressions generally identify forward-looking statements. These statements reflect our current expectations. They are subject to a number of risks and uncertainties, including, but not limited to, changes in technology and changes in pervasive markets.
Motion DNA Corporation