OXFORD, Miss., Sept. 26, 2006 (PRIMEZONE) -- Modern Technology Corp. (OTCBB:MODC), a diversified technology development and acquisition company, announced today that as part of its 2006 plan to achieve operational profitability and to increase stockholder equity, it has exchanged its interest in its subsidiary Sound City for the elimination of $800,000 of Convertible Debentures and associated late charges, interest payments and registration requirements. Also eliminated from MODC's liabilities was $177,000 of recurring payables and the elimination of $177,000 of Callable Convertible Debentures.
This transaction eliminates over $1,000,000 in current and contingent liabilities and eliminates any future dilution to Common Stock associated with these convertible debentures. All negative cash-flow - estimated to be $100,000 per month - from this business unit and the need for additional borrowings from investors to sustain its operations have been eliminated.
Anthony Welch, Chairman, said: "Our 2006 profitability and equity building plan continues with this new step forward in eliminating or restructuring all unprofitable business units. As promised, we are focused on positive earnings and building equity for 2006 and we are making great strides as evidenced by this transaction. We have removed a sizeable amount of liability from our Balance Sheet and thereby eliminated any future dilution to Common Stock resulting from these liabilities. We have also eliminated a significant recurring source of negative cash-flow. The company has new acquisitions under consideration and anticipates announcing one or more new additions to our portfolio soon. Due to an unavoidable delay arising from negotiations with one of our subsidiaries, acquisition opportunities were previously set aside. The company will now work to complete these prospective acquisitions and announce the results in the near future. Shareholders should expect further updates on the new acquisitions, revenues, and our targets for profitability and sales from these new acquisitions."
Stockholders can soon expect updates on the following:
-- Bioscience acquisitions with profound technology and implications
-- Positive changes to operations and financial reporting personnel
-- Continuing updates on, or announcement of, significant new
acquisitions
This guidance is the company's best, good faith estimate based on current conditions and numerous assumptions about the company's industry, its access to financing, the competitive and regulatory landscape and its ability to successfully consummate the acquisitions under consideration.
About Modern Technology Corp.
Modern Technology Corp., a diversified technology development and acquisition company, builds revenues through continuous growth, strategic acquisitions, and commercialization of nascent technology. MODC improves operating efficiencies through the elimination of cost redundancies and realized synergy between subsidiaries.
Web Address: http://www.moderntechnologycorp.com
Safe-Harbor Statement
This press release contains statements (such as projections regarding future performance) that are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those projected as a result of certain risks and uncertainties, including but not limited to those detailed from time to time in the Company's filings with the Securities and Exchange Commission.