NEWTON, Mass.--(BUSINESS WIRE)--March 31, 2004--(Symbol OTCBB: MFIC)
MFIC Corporation (the “Company”) announced today a final closing of a previously announced private placement of the Company’s securities. The offering of investment units (each unit containing one share of common stock and a 3-year warrant to purchase 1/2 share of common stock) was conducted through Casimir Capital L.P., as placement agent. The units were priced at $2.50 and the associated warrants are exercisable at $3.05. Gross proceeds from the initial and final closings of the offering aggregated $3,566,540, before deducting placement agent fees, non-accountable expenses and legal, accounting and other expenses. A Form 8 K filing containing full details of the transaction will be submitted to the SEC in the next few days.
Irwin Gruverman, CEO and Chairman of MFIC stated, “In prior announcements in 2004 we reported the sale of assets of our Morehouse-COWLES Division and the restructuring of our bank debt. Both of these events should contribute to substantial improvement in our profitability and cash flow potential. This private placement equity financing is the third significant transaction in 2004 and, we believe, creates a stable and well funded structure. This equity financing will provide the capital to allow us to invest confidently in expanded marketing/sales and product development programs for our core Microfluidizer(R) processor systems business and commercial development of our new patented Multi-Stream Mixer/Reactor for production of nanoparticles. We have provided equipment for producing nanostructures for more than 15 years and intend to expand our presence in the nanotechnology manufacturing space, in which our objective is to be a dominant supplier of enabling laboratory and production equipment.”
Management believes that this release contains forward-looking statements that are subject to certain risks and uncertainties including statements relating to the Company’s plan to maintain and/or increase operating profitability. Such statements are based on management’s current expectations and are subject to a number of factors and uncertainties that could cause actual results achieved by the Company to differ materially from those described in the forward-looking statements. The Company cautions investors that there can be no assurance that the actual results or business conditions will not differ materially from those projected or suggested in such forward-looking statements as a result of various factors, including but not limited to the following risks and uncertainties: (i) whether the performance advantages of the Company’s Microfluidizer(R) materials processing equipment or that a commercial market for the equipment will continue to develop, (ii) whether the performance advantages of the Company’s MMR nanoparticle production systems will be realized commercially, (iii) whether the Company’s expectation that the benefits of nanotechnology will, in part, be realized by the ability of the MMR to produce innovative materials in large quantities, (iv) whether the Company’s is able to increase the number of prototype MMR placements and then manufacture and introduce commercial production MMR equipment, and (v) whether the Company will have access to sufficient working capital through continued and improving cash flow from sales. Proceeds from its private placement equity offering, and ongoing borrowing availability, the latter being subject to the Company’s ability to comply with the covenants and terms of the Company’s loan agreement with its senior lender.
MFIC CORPORATION
MFIC Corporation, through its Microfluidics Division, provides patented and proprietary, high performance Microfluidizer(R) materials processing equipment to the chemical, pharmaceutical, biotechnology, cosmetic/personal care, and food processing industries. Through Its Microfluidics Division, the Company provides leading equipment, and innovative technology and comprehensive solutions for nanocrystal and other materials processing.
Contacts
MFIC Corporation Irwin Gruverman, CEO & Chairman Robert P. Bruno, President & COO Jack M. Swig, Investor Relations Tel. 617-969-5452 Fax 965-1213 E-mail: info@mfics.com