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GENERAL KINETICS ANNOUNCES NEW DEBT FINANCING, SALE OF ROCKVILLE, MD., FACILITY AND DELAY IN COMPLETING 1993 AUDIT

 ROCKVILLE, Md., Sept. 1 /PRNewswire/ -- General Kinetics Incorporated (AMEX: GKI) (GKI), a designer, producer and marketer of high-end, digital secure facsimile equipment, plastic sorting and food testing equipment and precision enclosures headquartered in Rockville, made the following announcements:
 Gutzwiller and Partner, AG, a principal investor in GKI, has provided a further $2.0 million subordinated loan to the company. This loan follows an earlier $5 million equity and debt investment by Gutzwiller at the end of 1992 and a debt investment of $2.5 million in April 1993. The new loan is evidenced by GKI's newly issued Series C Subordinated Debentures, dated as of Aug. 15, 1993. The debentures mature in one year and were issued in the aggregate face amount of $2.0 million, with proceeds to the company, net of prepaid interest, equaling $1.925 million. The debentures bear interest at 4 percent per year payable in arrears on Feb. 16, 1994, and at maturity on Aug. 14, 1994.
 GKI further announced the sale of its 16,850-square-foot building in Rockville in which its executive offices are located for a gross purchase price of $900,000. Net of mortgage indebtedness, commissions and expenses, the cash proceeds to the company were approximately $185,000. The net gain on sale to the company is in excess of $500,000. The company will relocate its headquarters to Northern Virginia.
 The company further reported to the Securities and Exchange Commission that it is in the process of completing its audits for the 1992 and 1993 fiscal years but expects the filing of its annual Form 10- K Report to the SEC to be delayed by a period not to exceed two weeks. As previously reported, the audit of GKI's financial statements for the 1992 fiscal year was significantly delayed and, in light of events subsequent to the initial announcement of the 1992 results of operations, certain adjustments to such 1992 results will be required. These adjustments could significantly increase the loss previously reported for the 1992 fiscal year. The company anticipates reporting a significant loss, after year-end adjustments, for the fourth quarter of fiscal year 1993 and, expects a net loss of 1993 significantly higher than the loss of $1,574,600 previously reported for the nine months ended Feb. 28, 1993.
 -0- 9/1/93
 /CONTACT: David A. Shaw, president, General Kinetics Incorporated, 301-881-2044/
 (GKI)


CO: General Kinetics Incorporated; Gutzwiller and Partner, AG ST: Maryland IN: CPR SU:

DC-KD -- DC008 -- 7944 09/01/93 11:56 EDT
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Publication:PR Newswire
Date:Sep 1, 1993
Words:416
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