HOWELL, Mich., June 4, 2012 /PRNewswire/ -- 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 E Convertible Preferred Stock.
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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.
About MWW Automotive Group (MWW)
MWW's is headquartered in Howell, Michigan, with a 45,000 square foot "Class A" manufacturing and logistics facility in Baroda, Michigan for the production of OE quality automotive and industrial products. The MWW Automotive Group (OTCQB: MWWC) delivers accessory products and "Class A" painting, assembly and logistics services directly to major global automobile manufacturers' Tier1s and/or directly to assembly lines in the United States, Canada and Europe. MWW's industrial products are delivered directly to the manufacturers for installation in their facilities. Noted for its adherence to the highest quality standards, its oversize unit production capacity and its advanced logistics capabilities, MWW products and services consistently exceed customers' requirements. MWW has and continues to provide substantial added value to the sale of vehicles and industrial products for leading international automobile and industrial manufacturers such as Toyota, BMW, Chevrolet, Hyundai, Kia Motors, GM, Ford, Mazda and Deere. For more information visit www.mwwautomotive.com, or e-mail [email protected]
Safe Harbor Statement: Certain statements in this press release that are not historical facts are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements may be identified by the use words such as "anticipate," "believe," "expect," "future," "may," "will," "would," "should," "plan," "projected," "intend," and similar expressions. Such forward-looking statements, involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements to be materially different from those expressed or implied by such forward-looking statements. The Company's future operating results are dependent upon many factors, including but not limited to the Company's ability to: (i) obtain sufficient capital or a strategic business arrangement to fund its expansion plans; (ii) build the management and human resources and infrastructure necessary to support the growth of its business; (iii) competitive factors and developments beyond the Company's control; and (iv) other risk factors discussed in the Company's periodic filings with the Securities and Exchange Commission, which are available for review at www.sec.gov under "Search for Company Filings."
SOURCE MWW Automotive Group