Institutional Investor Acquires MWW Automotive Existing Series A and Series B Preferred Shares - Retires Majority and Restructures Balance
HOWELL, Mich., June 4, 2012 /PRNewswire via COMTEX/ -- MWW Automotive Group (OTCQB: MWWC), a global design, engineering, and manufacturing firm serving some of the world's leading automotive and industrial manufacturers, announced today that its Series A and Series B Preferred shares, issued to Vision Capital in 2007 and 2008 and due for mandatory conversion were purchased by institutional investors, led by Southridge Partners II LP based in Connecticut. Southridge bought the Series A and Series B from Vision Opportunity Master Fund, Ltd and Vision Capital Advantage Fund, L.P. and reached an agreement with MWW Automotive to cancel the Series A and Series B and associated warrants in exchange for 11,923 new shares of the Company's Series EConvertible Preferred Stock. (Logo: http://photos.prnewswire.com/prnh/20110816/DE52700LOGO )
Michael Winzkowski, Chairman of MWW Automotive remarked: "Reducing the Company's Series A Convertible Preferred by $1.7 Million to Zero and restructuring the remaining Series B is a very important step towards improving the Company's capital structure and significantly reducing the overhang of shares in the market. This exchange should reduce future dilution and hopefully generate some of the market improvement we are aiming for in the near future. While our main focus right now is to get new production launches financed and off the ground, so we can fulfill the performance expectations of our clients and shareholders, we will also continue to make increasing efforts to improve our share structure in concert with our institutional investors for the benefit of all shareholders."
In April 2007, the Company sold 3,500,000 shares of Series A Convertible Preferred Stock and issued 15,500,000 warrants to Vision Opportunity Master Fund, Ltd. for gross proceeds of $3,500,000. In 2008, the Company issued 1,192,308 shares of Series B Convertible Preferred Stock to Vision Opportunity Master Fund, Ltd. for the cancellation of 15,500,000 warrants. At September 30, 2011 and March 31, 2012, the Series A was listed as temporary equity of $3,499,950 and $1,691,851 respectively on the Company's balance sheet. Between September 30, 2011 and March 31, 2012, a portion of the Series A was converted into common stock to eliminate $1,808,099 of temporary equity. The exchange eliminates the remaining $1,691,851 of temporary equity on the balance sheet attributed to the Series A. Please see the Company's 8K for full detail of the transaction at www.sec.gov.
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