Aerosonic Secures Financing For Up To $2 Million.CLEARWATER, Fla. -- Aerosonic Corporation (NYSE NYSE See: New York Stock Exchange Amex:AIM), a leading supplier of precision flight products for commercial, business and military aircraft, announced today that on May 14, 2009, the company entered into three unsecured loan Unsecured Loan A loan that is issued and supported only by the borrower's creditworthiness, rather than by some sort of collateral. Notes: Generally, a borrower must have a high credit rating to receive an unsecured loan. agreements for up to $2 million in principal amount in the aggregate with attached warrants. The $2 million in principal amount of the loans available to the company are represented by three separate 14% unsecured subordinated notes issued to three Aerosonic stockholders, Bruce J. Stone, Redmond Family Investments, LLP LLP - Lower Layer Protocol and Martin L. Schaffel (the "Investors"). Aerosonic may, at its discretion, draw down upon the loans on a pro rata [Latin, Proportionately.] A phrase that describes a division made according to a certain rate, percentage, or share. In a Bankruptcy case, when the debtor is insolvent, creditors generally agree to accept a pro rata share of what is owed to them. basis. Each of the subordinated notes are payable in full on or before April 10, 2010. Upon each cash draw down, Aerosonic will be required to issue common stock and warrants to the Investors, subject to approval by NYSE Amex of the company's Additional Listing Application. All shares of Aerosonic common stock that may be issued in connection with the subordinated notes or upon exercise of the warrants will not be registered under the Securities Act of 1933 and will be eligible to be sold pursuant to Rule 144. Additional terms of the financing can be found in the company's Current Report on Form 8-K Form 8-K The form required by the SEC when a publicly held company incurs any event that might affect its financial situation or the share value of its stock. Form 8-K See 8-K. filed today with the Securities and Exchange Commission. Douglas J. Hillman Hillman was a famous British automobile marque, manufactured by the Rootes Group. It was based in Ryton-on-Dunsmore, near Coventry, England, from 1907 to 1976. Before 1907 the company had built bicycles. , Chief Executive Officer of Aerosonic states: "Although our recovery from the fire has progressed nicely, cash flow demands over the next few months require that we have access to additional working capital. We are grateful that some of our investors were willing to provide this needed financing under very difficult market conditions. The financing will allow us to firmly complete our recovery and build for the future." Aerosonic Corporation, headquartered in Clearwater, Florida Clearwater is a city located in central Pinellas County, Florida, USA, nearly due west of Tampa. As of the 2000 census, the city had a total population of 108,787; however, according to the 2005 U.S. Census Bureau's estimates, the city's population fell slightly to 108,687. , is principally engaged in the manufacture of aviation products. Locations of the Company include Clearwater, Florida and Earlysville, Virginia. For additional information, visit the Company's website at www.aerosonic.com. This document contains statements that constitute "forward-looking" statements within the meaning of the Securities Act of 1933 and the Securities Act of 1934, as amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. by the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. "Forward-looking" statements contained in this document include the intent, belief or current expectations of the Company and its senior management team with respect to future actions by officers and directors of the Company, prospects of the Company's operations, profits from future operations, overall future business prospects and long term stockholder value, as well as the assumptions upon which such statements are based. Investors are cautioned that any such forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. are not guarantees of future performance, and that actual results may differ materially from those contemplated by such forward-looking statements. Important factors that could cause actual results to differ materially from those contemplated by the forward-looking statements in this document include, but are not limited to, adverse developments involving operations of the Company's business units, failure to meet operating objectives or to execute the business plan, and the failure to reach revenue or profit projections. The Company undertakes no obligation to update or revise the forward-looking statements contained in this document to reflect changed assumptions, the occurrence of unanticipated events, or changes to future operating results over time. |
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