Company Website:
http://www.mechtech.com
ALBANY, N.Y. -- (Business Wire)
Mechanical Technology, Incorporated (MTI or the Company), (OTCQB: MKTY),
a company engaged, through its subsidiary MTI Instruments, Inc., in the
design, manufacture and sale of precision test and measurement sensors,
instruments and systems that provide solutions for linear displacement,
vibration measurement and system balancing and tensile measurements in
markets that require the exacting measurement and control of products
and processes for automated manufacturing, assembly and consistent
operation of complex machinery, announces the investment of $2.74
million for future growth initiatives.
Brookstone Partners (www.brookstonepartners.com),
a private equity firm in New York City, has, through Brookstone Partners
Acquisition XXIV, LLC (Brookstone), acquired 3.75 million newly issued
shares of common stock of MTI for $2.74 million. Following this
investment, MTI intends to continue to focus on the current growth
strategy in the analytical measurement market with sensors, instruments
and systems. This new investment has allowed MTI’s balance sheet to
improve and provides MTI with additional capital for, among other
things, key strategic activities. We believe that, in turn, this will
facilitate an accelerated use of the approximate $51.0 million in unused
Federal net operating loss carryforwards (NOLs) incurred by MTI during
the microfuel cell development period to offset future taxable income.
Concurrent with the investment, the membership of the Board of the
Company has changed. In accordance with the terms of the Stock Purchase
Agreement between MTI and Brookstone pursuant to which MTI sold the
shares of common stock to Brookstone, Dr. Walter L. Robb and Mr. Dennis
O’Connor have resigned from the Board, and the Board appointed Mr.
Matthew Lipman and Mr. Michael Toporek of Brookstone and Mr. Ted
Hirshfield of Steppingstone Group as new members of the Board.
“We are extremely excited about the future of MTI with the addition of
new capital and our association with Brookstone,” stated Kevin G. Lynch,
CEO of MTI. “Now that we have stabilized the base business, after a
difficult year in 2015, the additional capital will enable us to look to
expand our growth strategy beyond our current organic growth model. With
Brookstone at our side, we expect to generate and execute on new
strategic activities including potential acquisitions. This will also
strengthen our ability to deliver on our stated goal in achieving
shareholder value in conjunction with our recently announced
Shareholders’ Rights Plan to protect and ultimately utilize the
approximate $51.0 million in NOLs that were generated in the past.”
“On behalf of all shareholders and members of the Board, we want to
thank both Dr. Robb and Mr. O’Connor for their dedicated service to the
Board and for their guidance and unwavering commitment to MTI for more
than 20 years.”
About MTI
MTI is engaged in the design, manufacture, and sale of test and
measurement instruments and systems through its subsidiary MTI
Instruments, Inc. MTI Instrument's products use a comprehensive array of
technologies to solve complex, real world applications in numerous
industries including manufacturing, electronics, semiconductor, solar,
commercial and military aviation, automotive and data storage. For more
information about the Company, please visit www.mechtech.com.
Statements in this press release that is not historical fact, in
particular, “MTI intends to continue to focus on the current growth
strategy in the analytical measurement market with sensors, instruments
and systems,” that the new investment will, in turn, “facilitate
accelerated use of the … Federal net operating losses” and “we expect to
generate and execute on new strategic activities including potential
acquisitions” constitute forward-looking statements within the meaning
of federal securities laws. All forward-looking statements are made as
of today, and MTI disclaims any duty to update such statements. It is
important to note that the Company’s actual results could differ
materially from those projected in forward-looking statements. Factors
that could cause the anticipated results not to occur include: the
failure of the Company to locate viable strategic activities including
potential acquisitions that are beneficial to the Company; that the
uncertainty of the global economy may affect demand for our products;
variability of customer requirements resulting in cancellations,
reductions, or delays; our inability to build and maintain relationships
with our customers; and the other risk factors listed from time to time
in the Company’s reports filed with the Securities and Exchange
Commission, including, but not limited to, our annual report on Form
10-K for the year ended December 31, 2015, and our quarterly reports on
Form 10-Q.
View source version on businesswire.com: http://www.businesswire.com/news/home/20161024005111/en/
Contacts:
Mechanical Technology, Incorporated
Lisa Brennan, 518-218-2500
lbrennan@mtiinstruments.com
Source: Mechanical Technology, Incorporated
© 2024 Canjex Publishing Ltd. All rights reserved.