Yunhong CTI Ltd. Announces $1.5 Million Private Placement of Series B Redeemable Convertible Preferred Stock
December 10, 2020 at 11:05 AM EST
LAKE BARRINGTON, IL / ACCESSWIRE / December 10, 2020 / Yunhong CTI Ltd. (NASDAQ:CTIB) ("Yunhong CTI" or the "Company"), a leading manufacturer of custom film products, foil and latex novelty balloons, and flexible packaging products, announced that it has entered into an stock purchase agreement with an investor, whereby the investor made a $1.5 million strategic investment in Yunhong CTI in exchange for 170,000 shares of the Company's Redeemable Series B Convertible Preferred Stock.
"Earlier this year, we announced several initiatives to reduce costs and improve our cash flow to further enhance shareholder value. This equity investment is an important step that will enhance our ability to invest in key customer relationships and support our operations. In summary, we view this investment as a strong vote of confidence in our overall strategy to simplify our business and focus on profitable, growth-oriented product lines and prioritize investments that enhance our manufacturing capabilities to better pursue attractive growth opportunities," said Jennifer Connerty, Chief Financial Officer of Yunhong CTI.
Pursuant to the stock purchase agreement, the investor purchased 170,000 shares of the Company's Series B Redeemable Convertible Preferred Stock at a purchase price of $10.00 per share for an aggregate purchase price of $1.5 million. The preferred stock includes quarterly dividends at the annual rate of 8%. Such dividends may be paid in cash or in shares of common stock at the Company's discretion. The Series B Redeemable Convertible Preferred Stock is redeemable on certain terms and conditions on or after November 30, 2021, and subject to certain other rights and obligations. Additional information regarding the investment is included in a Form 8-K filed by the Company with the Securities and Exchange Commission on November 25, 2020.
The securities to be sold by Yunhong CTI pursuant to the transactions described above have not been registered under the Securities Act of 1933 or any state securities laws and may not be offered or sold in the United States absent registration with the U.S. Securities and Exchange Commission or an applicable exemption from such registration requirements.
This press release does not constitute an offer to sell or the solicitation of an offer to buy the securities, nor will there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of such jurisdiction.
About Yunhong CTI Ltd.
Yunhong CTI is one of the leading manufacturers and marketers of foil balloons and produces laminated and printed films for commercial uses. Yunhong CTI also distributes Candy Blossoms and other gift items and markets its products throughout the United States and in several other countries. For more information about our business, visit our corporate website at www.ctiindustries.com.
Forward Looking Statements
Statements made in this release that are not historical facts are "forward-looking" statements (within the meaning of Section 21E of the Securities Exchange Act of 1934) that involve risks and uncertainties and are subject to change at any time. These "forward-looking" statements may include, but are not limited to, statements containing words such as "may," "should," "could," "would," "expect," "plan," "goal," "anticipate," "believe," "estimate," "predict," "potential," "continue," or similar expressions. We have based these forward-looking statements on our current expectations and projections about future results. Although we believe that our opinions and expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements, and our actual results may differ substantially from statements made herein. . Our future plans anticipate the successful completion of the financing described above. Any failure to do so would have a negative impact on our financial condition. More information on factors that could affect Yunhong CTI's business and financial results are included in its public filings made with the Securities and Exchange Commission, including its Annual Report on Form 10-K and Quarterly Reports on Form 10-Q.
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SOURCE: Yunhong CTI Ltd.
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