AMPG's Acquisition of Specialty Microwave

AmpliTech (AMPG) Closes Specialty Microwave Acquisition; Expands Balance Sheet Capacity

Thu September 12, 2019 2:30 PM | GlobeNewswire | About: AMPG Bohemia, NY, Sept. 12, 2019 (GLOBE NEWSWIRE) -- via NEWMEDIAWIRE --AmpliTech Group, Inc. (OTCQB: AMPG):

AmpliTech Group, Inc. (AMPG) is pleased to announce that it closed the acquisition of the assets of Specialty Microwave Corporation (SMW) today and has completed the audit work required to complete the acquisition. As part of the closing process, AMPG and SMW agreed that AMPG would not acquire the freehold property at 120 Raynor Ave, Ronkonkoma (the “Property”)(SMW’s Headquarters) for $1.2mm (comprising $150k cash at close and a five year, $1.025mm Promissory Note) at close, and have instead entered into a 5 year lease on the Property with an option to buy the Property during the first two years of the lease term for $1.2mm and then at FMV for the remainder of the lease term. In addition, in conjunction with closing the SMW transaction, the Company has entered into a new banking relationship with BNB Bank, based in Long Island, for three new credit facilities:

A new, undrawn, $500 thousand credit facility (backed by accounts receivables and inventory on hand)(Credit Facility), with an initial floating interest rate of 6.25% per annum;

A new, fully drawn, $1.0 million, seven year term loan with a fixed rate of 6.75% per annum (Term Loan) and

A new, undrawn, $250 thousand equipment leasing facility (Equipment Facility).

The Credit Facility will replace the Company’s existing $250 thousand undrawn credit

facility and the Term Loan will refinance the existing $332 thousand term loan, providing

the Company with an additional $650 thousand in cash for working capital/growth

initiatives. The Equipment Facility will be in addition to the existing leases the Company

has over certain lab equipment, which will allow the Company to invest in capital

equipment without tapping the Term Loan proceeds or the Credit Facility.

In commenting on the closing, Fawad Maqbool, CEO, said: “We are excited to begin a

new era in the Company’s growth trajectory with the closing of the acquisition of SMW’s

assets, including its goodwill, and the merging of our teams. We are anticipating

significant synergies between the two businesses, which could solidify and grow in the

coming quarters.”