PRINCETON N.J., July 13, 2016 (GLOBE NEWSWIRE) -- Mikros Systems Corporation (OTCQB:MKRS) announced today that it
has completed a recapitalization transaction to eliminate all issued and outstanding shares of preferred stock.
The Company previously had four classes of preferred stock, which were exchanged or redeemed for a combination of
common stock and cash payments as follows:
- Convertible Preferred Stock – $0.165 plus 1.95 shares of common stock per share
- Series B Preferred Stock – $0.0825 plus 2.43 shares of common stock per share
- Series C Preferred Stock – $2.708 plus 31.27 shares of common stock per share
- Series D Preferred Stock – $0.3623 cash plus 5.07 shares of common stock per share
In connection with the preferred stock exchange, Mikros also repurchased 2,084,167 issued and outstanding shares of
common Stock owned by the United States Small Business Association. As a result of these transactions, the Company will make
aggregate cash payments of $544,017, issue 3,089,806 additional shares of common stock, and eliminate $2,955,433 of aggregate
liquidation preferences applicable to its previously outstanding shares of preferred stock. Complete details of the
transactions are set forth in the Company’s Current Report on SEC Form 8-K filed with the Securities and Exchange Commission on
June 17, 2016.
“These transactions have greatly simplified our capital structure and removed almost $3,000,000 of accrued
dividends and liquidation preferences required to be paid prior to any distribution to holders of our common stock. We
believe that the recapitalization, combined with our recent strategic corporate moves to diversify the markets and customers we
serve, will accelerate the growth of our company and create long term value for our common shareholders,” said Tom Schaffnit,
Mikros Director and Chairman of the Corporate Administration Committee of the Board of Directors, which negotiated the
transactions.
About Mikros
Mikros Systems Corporation is an advanced technology company specializing in the research and development of
electronic systems technology for military, industrial and commercial applications. Classified by the U.S. Department of
Defense as a small business, its capabilities include technology management, electronic systems engineering and integration, radar
systems engineering, command, control, communications, computers and intelligence systems engineering, and communications
engineering. Mikros’ primary business is to pursue and obtain contracts from government and commercial customers. For
more information on Mikros, please visit: www.mikrossystems.com.
Important Information about Forward-Looking Statements
All statements in this news release other than statements of historical facts are forward-looking statements which
contain our current expectations about our future results. Forward-looking statements involve numerous risks and uncertainties. We
have attempted to identify any forward-looking statements by using words such as "anticipates," "believes," "could," "expects,"
"intends," "may," "should" and other similar expressions. Although we believe that the expectations reflected in all of our
forward-looking statements are reasonable, we can give no assurance that such expectations will prove to be correct. Such
statements are not guarantees of future performance or events and are subject to known and unknown risks and uncertainties that
could cause the Company's actual results, events or financial positions to differ materially from those included within or implied
by such forward-looking statements. Such factors include, but are not limited to, changes in business conditions, a decline or
redirection of the U.S. Defense budget, significant delays or reductions in appropriations for our projects, the termination of any
contracts with the U.S. Government, changes in our sales strategy and product development plans, changes in the marketplace,
continued services of our executive management team, our limited marketing experience, competition between us and other companies
seeking SBIR grants, competitive pricing pressures, market acceptance of our products under development, delays in the development
of products, our ability to adequately integrate our new software offerings into our business model, statements of assumption
underlying any of the foregoing, and other factors disclosed in our annual report on Form 10-K for the year ended December 31, 2015
and other filings with the SEC. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak
only as of the date made. Except as required by law, we undertake no obligation to disclose any revision to these forward-looking
statements.
CONTACT: Patricia Kapp – 609-987-1513