CPS Technologies Corporation Establishes New $2.5 Million Credit Facility
September 26 2019 - 4:53PM
CPS Technologies Corporation (Nasdaq:CPSH) today announced that it
has entered into a new three year $2.5 million credit facility with
The Massachusetts Business Development Corporation. The new
credit facility replaces the $1.25 million credit facility with
Santander Bank, due to expire on September 30, 2019. Net
availability under the facility will be 80% of eligible accounts
receivable and is secured by accounts receivable, inventory and
other assets of the company.
Chuck Griffith, Chief Financial Officer, stated, “Our new credit
facility provides us with additional access to capital and provides
us with more flexibility in meeting the needs of our expected
growth. We are now able to include most of our foreign
accounts receivable in the eligible accounts receivable category,
significantly increasing our availability over that of our previous
credit facility. Payment terms with some foreign customers
are quite long; the increased availability of this credit facility
will allow us to stop offering discounts for earlier payment to
certain customers which will have a positive impact on both our top
and bottom line. We are pleased to be working with The
Massachusetts Business Development Corporation and believe they
will be able to meet our capital needs for the foreseeable
future.”
About CPS
CPS Technologies Corporation is a global leader in producing
metal-matrix composite components used to improve the reliability
and performance of various electrical systems. CPS products are
used in motor controllers for hybrid and electric vehicles,
high-speed trains, subway cars and wind turbines. They are also
used as heat spreaders in internet switches, routers and
high-performance microprocessors. CPS also develops and produces
metal-matrix composite armor.
Safe Harbor Statements made in this document that are not
historical facts or which apply prospectively, including those
relating to 2019 financial results, are forward-looking
statements that involve risks and uncertainties. These
forward-looking statements are identified by the use of terms and
phrases such as "will," "intends," "believes," "expects," "plans,"
"anticipates" and similar expressions. Investors should not rely on
forward looking statements because they are subject to a variety of
risks and uncertainties and other factors that could cause actual
results to differ materially from the company's expectation.
Additional information concerning risk factors is contained from
time to time in the company's SEC filings, including its Annual
Report on Form 10-K and other periodic reports filed with the SEC.
Forward-looking statements contained in this press release speak
only as of the date of this release. Subsequent events or
circumstances occurring after such date may render these statements
incomplete or out of date. The company expressly disclaims any
obligation to update the information contained in this release.
CPS Technologies Corporation Chuck Griffith, Chief Financial
Officer 111 South Worcester Street Norton, MA 02766 Telephone:
(508) 222-0614 Web Site: www.alsic.com
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