Financing Expected to Support Rollout of Q Line Gold System Throughout Best Buy Stores and aid in Sales Efforts for its Commercial Products
SPRINGFIELD, Mo., May 16 /PRNewswire-FirstCall/ -- SLS International (AMEX:SLS), a leading provider of premium quality sound systems for professional (recording studio, concert, etc.), cinema and home entertainment markets, announced today that it has signed an agreement to finance up to $5 million of accounts receivables. Under an arrangement with Prestige Capital Corporation, a finance company based in New Jersey, the Company is expected to use the financing to support the rollout of the Q-Line Gold System throughout Best Buy stores across the country.
"We are pleased that we were able to secure this financing which will allow us to accelerate shipments of the Q-Line Gold System to Best Buy," said John Gott, SLS International's Chairman and Chief Executive Officer. "With the product's upcoming appearance on the series finale of 'The Apprentice, this arrangement will allow us to produce the inventory necessary to meet the anticipated demand. We will also be able to use this facility to factor our commercial receivables allowing us to accelerate our cash flow and possibly aid in sales by extending additional credit terms to these customers." Under the agreement, the Company can assign domestic accounts receivable from any of its qualified customers to Prestige. Prestige will then advance up to 75% of the outstanding amount of each invoice, subject to a maximum outstanding balance of $5 million. Upon collecting the receivable Prestige will retain a fee equal to 3-6%, depending upon the age of the receivable from 30 to 90 days and then remit the balance of the entire invoice to the Company. The Company granted Prestige a security interest in all of its accounts receivables and inventory equal to the revolving outstanding balance of the amounts factored.
About SLS: Based in Ozark, Mo., SLS International, Inc. is a 30-year-old manufacturer and developer of new proprietary patent-pending ultra-high fidelity Ribbon Driver loudspeakers, patented Evenstar Digital Amplifiers and sound systems for the commercial, home entertainment, professional and music markets. SLS has perfected the ribbon-driver technology enabling their loudspeakers to achieve exceptional inner detail and accuracy with 20% to 30% less distortion of typical compression driver and dome tweeters. SLS speakers and systems are used in high-profile venues such as NBC/MSNBC's 2002 and 2004 Olympics studios, the Recording Academy's Grammy Producers SoundTable events, and for the NAMM winter show, providing sound in the AVID Technology booth just to name a few. For more information, visit http://www.slsaudio.com/ .
Safe Harbor Matters discussed in this press release contain forward-looking Statements within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this press release, the words "anticipate," "believe," "estimate," "may," "intend," "expect" and similar expressions identify such forward-looking statements. Actual results, performance or achievements could differ materially from those contemplated, expressed or implied by the forward-looking statements contained herein. These forward-looking statements are based largely on the expectations of the Company and are subject to a number of risks and uncertainties. These include, but are not limited to, risks and uncertainties associated with the impact of economic, competitive and other factors affecting the Company and its operations, markets, product, and distributor performance, the impact on the national and local economies resulting from terrorist actions, and U.S. actions subsequently; and other factors detailed in reports filed by the Company with the Securities and Exchange Commission. DATASOURCE: SLS International CONTACT: Andrew Hellman of CEOcast, Inc. for SLS International, +1-212-732-4300 Web site: http://www.slsloudspeakers.com/ http://www.slsaudio.com/
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