Conversion by the Company’s Largest Debtor Improves the Company’s Balance Sheet and Liquidity, Signals Support for the Company’s Future Growth Plans
Pompano Beach, Florida, Dec. 21, 2018 (GLOBE NEWSWIRE) -- Brownie's Marine Group, Inc. (OTCPink: BWMG) a leading developer, manufacturer and distributor of highly specialized dive and safety products, announced today that it is providing an update on a debt conversion by its largest non-management shareholder. On November 20, 2018, the Company announced via a filing on Form 8-K that on November 15, 2018, it had entered into a note conversion agreement with its largest debt holder, who converted $526,000 of principal and accrued interest due under a promissory note issued by BWMG into 50,000,000 shares of common stock.
As a result of the conversion, BWMG will record a non-cash loss on this conversion of debt of approximately $249,000 (unaudited) and increase its equity by approximately $526,000 (unaudited) during the quarter ending December 31, 2018.
Robert Carmichael, Brownie’s Chairman and CEO stated, “Based on inquiries from shareholders and potential investors, we believe there has been a fundamental misunderstanding about the transaction; and are therefore providing an update and clarification. We are very pleased that the debt holder, a longtime supporter of the company, has chosen to convert his debt into Brownie’s stock. The conversion substantially improves our balance sheet, current ratio, liquidity and shareholders’ equity. I believe it also sends a vote of confidence by our largest non-management shareholder that Brownie’s is on the right track going forward.”
Mr. Carmichael continued, “We believe one of the deciding factors in the debt holder’s decision to convert the promissory note is the progress we are making with the company in general and the new patent-pending BLU3 NEMO battery powered dive system in particular. The recent successful Kickstarter campaign for BLU3 NEMO is a validation of the market potential for super compact shallow water diving systems.
Mr. Joseph Perez, the converting debt holder, stated, “I initially entered into a note agreement with BWMG in May 2011. Based on the progress the company has made to date, my confidence in BWMG’s management and my belief in the exciting future upside of Brownie’s, I felt that now was the time to convert my debt into equity. I have a long term investment perspective on the company and have no current near term plans to sell any of my BWMG common stock.”
About Brownie’s Marine Group
Brownie’s Marine Group, Inc. (OTCPink: BWMG), a Florida corporation founded in 1981, is the parent company to an innovative family of six brands; Brownie’s THIRD LUNG, Blu3, NITROXMAKER, LW AMERICAS, YACTHPRO, and 3DBUOY. BMG manufactures, integrates, and distributes surface supplied air diving systems, scuba air compressors, nitrox generation systems, and water safety products in the United States and internationally. It also develops, manufactures, and sells high-pressure breathing air and industrial gas compressor packages for uses in the dive, fire, CNG, military, scientific, recreational and aerospace industries. The company sells its products on wholesale basis to retail dive centers, marine stores, pleasure boat and yacht builders; and retails its products to boat owners, recreational divers, beach resort watersports operators, and in-water maintenance professionals, as well as through the Internet. BWMG is headquartered in Pompano Beach, Florida.
Safe Harbor Statement
This press release contains certain forward-looking statements that are based upon current expectations and involve certain risks and uncertainties. Words or expressions such as "anticipate," "plan," "will," "intend," "believe" or "expect'" or variations of such words and similar expressions are intended to identify such forward-looking statements. These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties, and other factors, some of which are beyond our control and difficult to predict and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements, including, without limitation, statements made with respect to expectations of the impact of the debt conversion on our financial statements based upon audited numbers, our ability generate increased revenues, the ultimate future success of the BLU3 NEMO battery powered dive system, and other risks and uncertainties among others, all as set forth in our Annual Report on Form 10-K for the year ended December 31, 2017, our most recent Form 10-Q and our subsequent filings with the Securities and Exchange Commission. All forward-looking statements involve significant risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements, many of which are generally outside the control of Brownie’s Marine Group and are difficult to predict. Brownie’s Marine Group undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.