MKTY - Mechanical Technology Incorporated Announces Receipt of Historic Purchase Order and Secures Supporting Line of Credit
ALBANY, N.Y., May 7, 2020 /PRNewswire/ -- Mechanical Technology, Incorporated ("MTI"), a publicly traded company (OTC Pink: MKTY) headquartered in Albany, New York, announced today the receipt of the largest single order ever received by MTI Instruments, Inc. ("MTI Instruments"), the operating subsidiary of MTI engaged in the design, manufacture and sale of precision testing and measurement systems. This delivery order was made pursuant to the multi-year contract entered into by MTI Instruments and the United States Air Force in July 2016 and is composed of orders for 52 new PBS-4100+ vibration measurement and balancing systems, having a total purchase price value of approximately $3.3 million. MTI Instruments expects to fulfill and receive payment, with respect to this delivery order, by the end of 2020.
Upon receiving the record Air Force delivery order, MTI Instruments withdrew an application for a previously approved loan pursuant to the Paycheck Protection Program (the "PPP") under Division A, Title I of the Coronavirus Aid, Relief, and Economic Security ("CARES") Act, enacted on March 27, 2020. The PPP loan application was withdrawn by MTI Instruments due to improved business prospects and access to liquidity.
In connection with receipt of the Air Force delivery order, MTI Instruments is, effective today, obtaining a $300,000 secured line of credit from Pioneer Bank that will, among other things, assist with MTI Instruments' timely fulfillment of the recent Air Force delivery order. The line of credit may be drawn in the discretion of MTI Instruments and bears interest at a rate of prime +1% per annum. Accrued interest is due monthly and principal is payable over a period of 30 days following lender's demand. The line of credit is secured by the assets of MTI Instruments and is guaranteed by MTI.
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About MTI
MTI is the parent company of MTI Instruments, Inc. and EcoChain, Inc.. Through MTI Instruments, MTI is engaged in the design, manufacture and sale of test and measurement instruments and systems that use a comprehensive array of technologies to solve complex, real world applications in numerous industries, including manufacturing, electronics, semiconductor, solar, commercial and military aviation, automotive and data storage. Through EcoChain, MTI is developing a pilot cryptocurrency mining facility powered by renewable energy that integrates with the bitcoin blockchain network. For more information about MTI, please visit https://www.mechtech.com.
SOURCE Mechanical Technology, Incorporated