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.
(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.
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
investorrelations@mwwautomotive.com.
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