ORLANDO, Fla., Jan. 6, 2006 (PRIMEZONE) -- This release replaces in its entirety a release sent earlier under the same headline.
DataMetrics Corporation (OTCBB:DMTI), a leader in ruggedized information technology hardware, announced today that it has completed a major restructuring and capital investment deal with SG DMTI Capital, LLC ("SG DMTI").
According to Daniel Bertram, President and CEO of DataMetrics, the transaction includes the conversion of approximately $3.4 million of debt to equity, an infusion of $500,000 fresh operating capital through a new loan from SG DMTI, and up to an additional $500,000 in the form of preferred stock subject to the attainment of certain milestones. This announcement follows the sale/leaseback of its headquarters building with an affiliate of SG DMTI, which was announced last month.
"We are pleased to have significantly improved our balance sheet and we are very excited to be partnered with SG DMTI," said Mr. Bertram. "They are true professionals who understand our business and take a long range approach to their investments."
SG DMTI is part of a private equity firm that specializes in corporate turnarounds and is managed by Philip Sassower and Andrea Goren.
"DataMetrics had a debt load and capitalization structure that was constricting and we felt there was a great upside if we could remove these obstacles," said Mr. Sassower in explaining why SG DMTI decided to make the investment. "With this restructuring and investment, together with the sale/leaseback transaction, DataMetrics can now focus on growth, both internal and through acquisition, and on becoming the worldwide leader in the market for rugged IT solutions."
The DataMetrics Corporation (www.datametrics.com) designs, develops, and manufactures ruggedized printers, plotters, workstations, PCs, flat panel monitors, VMEs and peripherals (disk drives, tape drives, keyboards, trackballs and other equipment) for government, defense, aerospace, and industrial customers worldwide. DataMetrics also offers a wide range of services including engineering design, environmental testing, and build-to-print capability that utilize our 40 years of experience.
Except for the historical information contained herein, the matters discussed in this press release are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements involve risks and uncertainties, such as quarterly fluctuations in operating results, the timely availability of new products, the impact of competitive products and pricing, and other risks detailed in the Company's filings with the Securities and Exchange Commission, including the Company's Form 10-K for the fiscal year ended October 28, 2003. These risks and uncertainties could cause actual results to differ materially from any forward-looking statements made in this press release.