Reviews Financing Alternatives
Vancouver, British Columbia, Canada – May 8, 2017 – Targeted Microwave Solutions Inc. (TSXV: TMS) (“TMS”) announces that it has secured a commitment for a bridge loan from a significant shareholder of approximately C$500,000. The purpose of the bridge loan is to provide TMS necessary short-term working capital as it continues to drive commercialization and evaluate financing efforts.
The TMS board also approved the initiation of a comprehensive cost reduction plan. As part of this plan, TMS expects to immediately eliminate 8 positions, and reduce general and administrative costs. On an annualized basis, TMS expects cash savings of approximately C$2,600,000. TMS expects its cash runway, after proceeds from the bridge loan, to extend into early June.
Dr. James Young, chairman and CEO of TMS, stated: “The bridge loan, together with our cost reduction plan, will allow TMS to continue testing material at the King William plant in support of ongoing discussions with potential customers and strategic partners, while continuing to meet our current liabilities in the near-term.”
The bridge loan will be subject to customary conditions, including the negotiation of definitive documentation. TMS also continues to explore potential equity and debt financings to fund its activities beyond its current cash runway, and will provide additional information to shareholders in subsequent news releases.
On behalf of the Board of Directors,
“Dr. James Young”
Chief Executive Officer and Chairman
+1 (778) 995 5833
firstname.lastname@example.org About Targeted Microwave Solutions Inc.
About Targeted Microwave Solutions Inc.
Targeted Microwave Solutions Inc. is a clean technology company that designs and manufactures vertical WAVEdri® microwave reactors to dry and process coal, clay and biomass, including wood fibre. As a global leader in the advancement of microwave technology the Company’s mission is to provide the industry with a cleaner and more efficient technology solution, which replaces traditional industrial dryers and kilns, by eliminating toxic emissions, reducing energy requirements and conserving significant amounts of water at a lower capital investment.
The Company’s R&D and commercial demonstration plant in King William, Virginia is strategically located near several major industrial clay-based and biofuel manufacturers. The marketing and testing facility in Shanghai, China collects and analyzes material samples from nearby coal power plants and coal mines. The Company is a reporting issuer in Canada and is listed on the following stock exchanges:
| TSX-V: TMS | FRA: A2ACNT | OTCQX: TGTMF |
For further information, visit www.tmsenergy.com or the Company’s public disclosure filing on www.sedar.com.
This news release contains certain statements which are, or may be deemed to be, “forward-looking statements”. Forward-looking statements are statements that address or discuss activities, events or developments that we expect or anticipate may occur in the future. Forward-looking statements consist of statements that are not purely historical and, in this news release, include, without limitation, statements regarding the completion of the bridge loan and the receipt of proceeds therefrom, including the execution of definitive documentation, that the proceeds from bridge loan, if received, will be sufficient for TMS’s short-term working capital and to extend its cash runway into early June, and that the cost reduction plan will yield the expected benefits, including expected cash savings. When used in this news release, words such as “estimates”, “expects”, “plans”, “anticipates”, “projects”, “will”, “believes”, “intends”, “should”, “could”, “may” and other similar terminology are intended to identify such forward-looking statements. Forward-looking statements reflect the then-current expectations, beliefs, assumptions, estimates and forecasts of our management. Because forward-looking statements involve known and unknown risks, uncertainties, assumptions and other factors which are difficult to predict, our actual results, performance or achievements or the actual results or performance of the industries and markets in which we operate and intend to operate may be materially different from those anticipated in our forward-looking statements. Forward-looking statements involve significant uncertainties and risks, should not be read as guarantees of future performance or results and will not necessarily be an accurate indication of whether or not such results will be achieved. A number of factors could cause actual results to differ materially from the results discussed in our forward-looking statements, including our ability to negotiate and executive definitive documentation for the bridge loan, that working capital requirements may be greater than projected, that costs cannot be reduced as much as projected, that TMS will be able to successfully close its office in Gaithersburg, Maryland, and such other matters described in our public filings available on SEDAR at www.sedar.com. Accordingly, readers should exercise caution in relying upon our forward-looking statements and we undertake no obligation to publicly revise such statements to reflect subsequent events or circumstances, except as required by law.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.