Printer Friendly

Photomatrix Announces New Credit Facility With Bank and Equipment Acquisition.

CARLSBAD, Calif.--(BUSINESS WIRE)--July 15, 1998--Photomatrix Inc. (NASDAQ:PHRX), a value-added engineering, design and manufacturing company specializing in high-performance document scanners and aperture card scanners and digital imaging, announced today that it has entered into a new $2,100,000 credit facility with its bank that includes a $1,500,000 line of credit and a $600,000 term loan. The Company has used some of the proceeds from the term loan to acquire additional state-of-the-art equipment which will significantly broaden its surface mount technology ("SMT") printed circuit board manufacturing capacity.

The new line of credit will accrue interest on outstanding borrowings at the bank's prime rate plus 1% per annum. The Company's previous line of credit accrued interest at prime plus 2%. All other terms of the new line of credit, including various covenants, essentially remained the same. The Company plans to immediately use this line of credit to retire approximately $700,000 ofdebt of its wholly owned subsidiary, I-PAC Manufacturing Inc. ("I-PAC") under a line of credit with another bank.

Under the terms of the new agreement, total borrowings under the line of credit will be limited to the lesser of $1,500,000 or 70% of eligible accounts receivable (as defined under the agreement). The Company is required to continue to (1) maintain a minimum tangible net worth of $2,400,000 as of June 30, 1998, increasing to $2,600,000 as of September 30, 1998, $3,200,000 as of December 31, 1998, and $3,500,000 thereafter (2) maintain a ratio of total liabilities to tangible net worth of not greater than 2.75 to 1.0, and (3) maintain a minimum debt service coverage of no less than 1.25 to 1.0. The new line of credit expires in July, 1999.

"The additional PCB manufacturing equipment will result in a four-fold increase in our SMT capacity, as well as making I-PAC highly competitive in the newest and emerging fine pitch and ball grid array technologies. Our decision to standardize on the Mydata TP-11 Hydra, BTM oven and OPTI Print 2020 screen printer will allow future expansion on the most cost-effective and flexible basis," stated Patrick Moore, Chief Executive Officer.

Photomatrix Inc. and I-PAC Manufacturing Inc., with headquarters in Carlsbad, Calif., recently merged to become a value-added engineering, design and manufacturing company specializing in high-performance document scanners and aperture card scanners and digital imaging. Complete company and product information can be found at the Company's Web site which is located at

This press release contains forward-looking statements that involve risks and uncertainties. These statements include, without limitation, statements relating to the Company's plans and objectives for future operations, assumptions and statements relating to the Company's future economic performance, management's opinions about the ability of the Company to compete successfully and other non-historical information. The Company's actual results could differ materially from those discussed herein. Factors that could cause or contribute to such differences include, without limitation, those risks discussed in Item 6 under the heading "Additional Risk Factors" as well as those discussed elsewhere in the Company's Annual Report on Form 10-KSB.

 CONTACT: Photomatrix Inc.
 Roy Gayhart, 760/431-4999, Ext. 329

COPYRIGHT 1998 Business Wire
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1998, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

Article Details
Printer friendly Cite/link Email Feedback
Publication:Business Wire
Article Type:Article
Geographic Code:1USA
Date:Jul 15, 1998
Previous Article:Schlumberger Introduces ETC 1000 for Breakthrough Precision in Test Site Thermal Control.
Next Article:TXI Reports Record Earnings for Fiscal Year 1998.

Related Articles
Photomatrix Announces Renewal of Line of Credit.
REPEAT/ Photomatrix Announces Entering Into A Letter Of Intent To Merge With I-PAC Manufacturing Inc.
Photomatrix Announces Substantial Commitment From Bell & Howell.
Photomatrix Announces the Introduction of a New Breed of Ergonomic Scanners and the First True 32-Bit High-Speed Turnkey Scanning System.
Photomatrix Reports Third Quarter Results.
Photomatrix Announces Stock Repurchase Plan.
Photomatrix Announces March 31, 1998 Results.
Photomatrix Announces Employee Stock Purchase Plan.
Photomatrix Announces Halt in Bell & Howell Scanner Shipments.
Photomatrix Announces Board Change.

Terms of use | Copyright © 2018 Farlex, Inc. | Feedback | For webmasters