Tel-Instrument Electronics Corp. (“Tel”, “Tel-Instrument” or the “Company”) (NYSE American: TIK), a leading designer and manufacturer of avionics test and measurement solutions, today announced that it has completed a $1 million financing transaction. The Company issued an additional $1 million of Series B Preferred Stock in a private placement. This preferred stock includes an 8% dividend rate and will be convertible into shares of common stock at a price of $2.00 per share. The Company has the ability to repurchase these shares of preferred stock after a period of three-years.
Mr. Jeffrey O’Hara, President and CEO of Tel, stated, “After a difficult year and a half, we are pleased to have raised an additional $1 million of equity financing. This will enable us to capitalize on several multi-million contracts that we expect to receive this quarter and to finance the sharp growth in revenues and profitability that we believe to be impending. These funds will also help shore up our balance sheet as well as enabling us to continue development of our new SDI Omni Hand-held test set. The Company believes that it is poised for strong financial results and we appreciate the confidence of our shareholders.”
About Tel-Instrument Electronics Corp.
Tel-Instrument is a leading designer and manufacturer of avionics test and measurement solutions for the global commercial air transport, general aviation, and government/military aerospace and defense markets. Tel-Instrument provides instruments to test, measure, calibrate, and repair a wide range of airborne navigation and communication equipment. For further information please visit our website at www.telinstrument.com.
This press release includes statements that are not historical in nature and may be characterized as “forward-looking statements,” including those related to future financial and operating results, benefits, and synergies of the combined companies, statements concerning the Company’s outlook, pricing trends, and forces within the industry, the completion dates of capital projects, expected sales growth, cost reduction strategies, and their results, long-term goals of the Company and other statements of expectations, beliefs, future plans and strategies, anticipated events or trends, and similar expressions concerning matters that are not historical facts. All predictions as to future results contain a measure of uncertainty and, accordingly, actual results could differ materially. Among the factors which could cause a difference are: changes in the general economy; changes in demand for the Company’s products or in the cost and availability of its raw materials; the actions of its competitors; the success of our customers; technological change; changes in employee relations; government regulations; litigation, including its inherent uncertainty; difficulties in plant operations and materials; transportation, environmental matters; and other unforeseen circumstances. A number of these factors are discussed in the Company’s previous filings with the U.S. Securities and Exchange Commission. The Company disclaims any intention or obligation to update any forward-looking statements as a result of developments occurring after the date of this press release. The safe harbor for forward-looking statements contained in the Securities Litigation Reform Act of 1995 (the “Act”) protects companies from liability for their forward-looking statements if they comply with the requirements of the Act.
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Contacts:
Joseph P. Macaluso, 201-933-1600
