Acrodyne Receives Capital Investment From Sinclair Broadcast Group, Inc. and Implements New Manufacturing Cost Reduction Program.Business Editors/High-Tech Writers BLUE BELL, Pa.--(BUSINESS WIRE)--Feb. 28, 2000 Acrodyne Communications, Inc. (Acrodyne), parent company of Acrodyne Industries, Inc., a leading manufacturer and installer of UHF (Ultra High Frequency) The range of electromagnetic frequencies from 300 MHz to 3 GHz. In the U.S., analog television has used UHF channels 52 to 69 in the 700 MHz band. television transmission systems, announced today that it was entering into a working capital loan agreement with Sinclair Broadcast Group The Sinclair Broadcast Group (SBG) NASDAQ: SBGI is the operator of the largest number of local television stations in the United States with a total of 59 stations across the country in 38 primarily small and medium markets, many of which are located in the South and , Inc. (Sinclair) (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :SBGI SBGI Society of British Gas Industries ). The loan shall be a revolving $2.0 million line of credit and shall be evidenced by an unsecured convertible subordinated demand note payable interest only on a monthly basis. The interest rate is fixed at 10.5% per annum Per annum Yearly. and the note can be retired at anytime without penalty. The note is convertible into shares of Acrodyne common stock at a price of $ 3.45 per share. In addition, Sinclair exercised 75,000 warrants for the purchase of voting common stock at $3.00/share providing Acrodyne with an additional $225,000 paid in capital. Along with these financial transactions, Acrodyne has implemented new manufacturing procedures that will result in reductions to its work force and in its manufacturing costs. It is anticipated that these cost cutting programs and work force reductions will provide immediate improvement to the Company's performance. In the immediate future, Acrodyne will be focusing on its new exclusive North American sales relationship with Rohde & Schwarz, the world's foremost manufacturer of solid state transmitters, and on the introduction of a new technology high power product line for shipment later this year. A. Robert Mancuso, President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Acrodyne, stated, "The confidence Acrodyne's major shareholder, Sinclair Broadcast Group, Inc., is demonstrating through their continued financial commitment is because of the growth occurring in the television transmission systems market and Sinclair's belief in Acrodyne's ability to achieve a significant share of that market." Acrodyne Communications, Inc., is a publicly traded company publicly traded company A company whose shares of common stock are held by the public and are available for purchase by investors. The shares of publicly traded firms are bought and sold on the organized exchanges or in the over-the-counter market. (NASDAQ:ACRO acro Acronym ACRO Australian Creative Resources Online ACRO Association of Clinical Research Organizations ACRO American College of Radiation Oncology ACRO Aircraft Crashes Record Office (Geneva, Switzerland) acro acrolein ) and is an established and respected manufacturer of television broadcast equipment for over three decades. Acrodyne is a leading producer of technically advanced, high quality television transmitters. This press release contains "forward-looking statements" concerning future expectation, plans or strategies that involve a number of risks and uncertainties. The Company wishes to caution readers that certain factors may have affected the Company's actual results and could cause results for subsequent periods to differ materially from those expressed in any forward-looking statements to reflect subsequently occurring events or circumstances. |
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