Micron Solutions, Inc. Enters Sale-Leaseback Agreement
FITCHBURG, Mass., Aug. 25, 2020 (GLOBE NEWSWIRE) -- Micron Solutions, Inc. (OTCQB: MICR) (the “Company”), a diversified contract manufacturing organization, through its wholly-owned subsidiary, Micron Products, Inc., producing highly-engineered, innovative components and assemblies requiring precision machining and injection molding, announced entry into a purchase and sale agreement for the sale and leaseback of its main manufacturing facility.
Upon the closing of the sale and leaseback, Micron anticipates receiving proceeds of approximately $3.8 million. The Company expects to use the proceeds from the sale to reduce bank borrowings on its existing credit facility. The consummation of the sale and leaseback is subject to extensive due diligence, customary closing conditions and bank approval. Subject to the satisfaction of these conditions, we expect to close this transaction during the fourth quarter of 2020. Micron will continue to occupy the Fitchburg, MA facility under a long term, triple net, lease.
CEO Bill Laursen commented that “The sale-leaseback transaction will strengthen our balance sheet and enhance financial stability, which is another step in our overall strategy to support growth and enhance our focus as a best in class contract manufacturer.”
About Micron Solutions, Inc.
Micron Solutions, Inc., through its wholly-owned subsidiary, Micron Products, Inc., is a diversified contract manufacturing organization that produces highly-engineered, innovative medical device components requiring precision machining and injection molding. The Company also contract manufactures components, devices and equipment for military, law enforcement, industrial and automotive applications. In addition, the Company is a market leader in the production and sale of silver/silver chloride coated and conductive resin sensors used as consumable component parts in the manufacture of integrated disposable electrophysiological sensors. The Company’s strategy for growth is to build a best-in-class contract manufacturer with a specialized focus on plastic injection molding and highly-engineered medical devices and components requiring precision machining.
The Company routinely posts news and other important information on its website: http://www.micronsolutions.com
Safe Harbor Statement
Forward-looking statements made herein, including but not limited to, the terms, conditions and timing on closing the sale leaseback transaction, are based on current expectations of Micron Solutions, Inc. (“our” or the “Company”) that involve a number of risks and uncertainties and should not be considered as guarantees of future performance. The factors that could cause actual results to differ materially include our ability to obtain and retain order volumes from customers who represent significant proportions of net sales; our ability to maintain our pricing model, offset higher costs with price increases and/or decrease our cost of sales; variability of customer delivery requirements; the level of and ability to generate sales of higher margin products and services; our ability to manage our level of debt and provisions in the debt agreements which could make the Company sensitive to the effects of economic downturns and limit our ability to react to changes in the economy or our industry; failure to comply with financial and other covenants in our credit facility; the impact on the Company’s financial results due to economic uncertainty and disruption including, but not limited to, recent events concerning COVID-19; changes to regulations governing the forgiveness of the Company’s PPP Loan; reliance on revenues from exports and impact on financial results due to economic uncertainty or downturns in foreign markets; volatility in commodity and energy prices and our ability to offset higher costs with price increases; continued availability of supplies or materials used in manufacturing at competitive prices; variations in the mix of products sold; continued availability of supplies or materials used in manufacturing at competitive prices; the amount and timing of investments in capital equipment, sales and marketing, engineering and information technology resources; and the ability to satisfy the conditions of and timing of closing the sale leaseback transaction. Information about the Company's financial results is included in the Company's most recent Annual Report on Form 10-K, and the Company’s Quarterly Report for the period ending June 30, 2020, which is posted at https://www.otcmarkets.com/stock/MICR/ and https://micronsolutions.com.
For more information, contact:
Mr. Wayne Coll
Chief Financial Officer