Marketing Worldwide Corp. Receives $5 Million Commitment For Growth Capital From Southridge Partners II, LP
HOWELL, Mich., Aug. 10 /PRNewswire-FirstCall/ -- Marketing Worldwide Corporation (OTC Bulletin Board: MWWC) has announced it has agreed to terms with Southridge Partners II, LP (the "Purchaser") on an equity purchase agreement (EPA) which will provide significant growth capital to Marketing Worldwide Corp, enabling the further execution of its business plan and improvements in its operational structure.
Under terms of the agreement, Marketing Worldwide may sell up to $5 million of its common stock to Southridge by submitting a Draw Down Notice to the purchaser. In no event may the shares issuable pursuant to a Draw Down Notice, when aggregated with the shares then held by the Purchaser on the date of the Draw Down, exceed 4.99% of the Company's outstanding common stock. Marketing Worldwide Corp may draw upon the Facility periodically during the two-year term at its sole discretion, requiring Southridge to purchase shares of Marketing Worldwide Corp common stock. The purchase price of any shares of common stock purchased under the EPA Facility shall equal 90% of the two lowest closing bid prices during the five trading days, subject to a minimum floor price, commencing on the first trading day following delivery by the company of a Draw Down Notice. Southridge will receive 5 million warrants for the purchase of COMPANY common stock as part of this agreement. No shares were issued as part of this agreement. Utilizing the funds is subject to the filing of an S1 Registration Statement and approval by the SEC.
Southridge seeks strategic investments in emerging growth areas, domestically and in international markets. Southridge has successfully participated in financings in markets ranging from the United Kingdom, to companies based in China and Australia and others listed on United States domestic exchanges.
"We are happy that we were able to reach this agreement with Southridge," states Rainer Poertner, responsible for Corporate Development at MWW. "We are looking forward to constructively work with Southridge to raise the funds needed for the accelerated development of the company's restructuring plan, being currently implemented by MWW's new top management team. This will allow us to take advantage of the currently existing opportunities to improve financial performance for the benefit of all shareholders."About Southridge Partners Southridge LLC is a diversified financial holding company offering a wide range of products and services, including Fund Management, Investment Banking, Merchant Banking, Wealth Management and Business Solutions. For more information please visit www.southridgellc.com. About MWW Automotive Group With its headquarter and design and assembly facilities in Howell, Michigan and Class A painting facilities in Baroda, Michigan (Colortek, Inc.) the MWW Automotive Group delivers its accessory products, design services and Class A painting services directly to select large global automobile manufacturers' vehicle processing centers, distribution centers and/or assembly lines in the United States, Canada and Europe. The customers' technical teams install the MWW products in a variety of vehicle types and deliver the accessorized automobiles into the dealer channels in their respective regions. Noted for its adherence to the highest quality requirements, MWW provides substantial added value to the sale of vehicles for leading international automobile manufacturers such as Toyota, Hyundai, Nissan, Kia Motors and Ford in the US and Europe. For more information please visit www.mwwautomotive.com Safe Harbor Act: This release includes forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 that involves risks and uncertainties including, but not limited to, the impact of competitive products, the ability to meet customer and vendor demand, the ability to manage growth, acquisitions of technology, equipment, or human resources, the effect of economic business conditions, and the ability to attract and retain skilled personnel. The Company is not obligated to revise or update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this release.
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