Message #6 From:
Stock News Bot Date: September 28, 2005 06:36:00 AM
MYCM News Mycom Group Restructures Credit and Debt Facility
CINCINNATI--(BUSINESS WIRE)--Sept. 28, 2005--Mycom Group, Inc., a technology products, professional services, and software reseller, whose stock is traded on the over the counter market (OTCBB:MYCM), announced the Company's two top officers, Rob Bransom and Jim Bobbitt have agreed to forgive $536,370 of the $905,502 Notes payable to them. This debt originated in 2001 when Mr. Bransom and Mr. Bobbitt sold their interest in Broughton International, to the Mycom Group. For the balance of the Notes owed to them they will receive, over a period of the next 24 months, Mycom stock, cash payments, and Notes totaling $369,132. The forgiveness of debt is part of an overall restructuring plan to strengthen the Company's balance sheet and overall financial position. As a result, Goodwill related to the acquisition of Broughton will be written off in the amount of $536,370.
Mycom is in the process of renewing its' credit facility and has recently restructured terms with three of its' largest suppliers. The new trade credit limits and extended payment terms provided by these suppliers totals over $500,000. In conjunction with procuring terms with its largest vendor, the Company has also converted about $338,000 of accounts payable to a 15 month Note, to further maximize the Company's cash flow position. Additionally, the Company expects to finalize a renewal of its credit facility with First Financial Bank in the approximate amount of $1,000,000.
Mycom's CEO, Rob Bransom, stated, "One of the primary reasons for our recent sale of some of our technology and our managed services division was to enable us to pay down some of our debt and to improve our credit terms with suppliers. Our willingness to give up over half a million dollars that is owed to us represents our commitment to Mycom and to strengthening the Company's financial position."
Bransom continued, "We are also pleased to have recently received notice of the dismissal of a lawsuit that was filed against the Company in 2001 and tried in Federal Court in 2004. The dismissal clears any liability concerns that investors and stockholders may have had, and puts the uncertainty surrounding the litigation behind us."
About Mycom Group Inc.
The Mycom Group, Inc. is a technology solutions and professional services provider to businesses and organizations throughout North America. It markets a wide range of software, hardware, enterprise solutions and technology services. Mycom markets new applications and services using the mycomPRO(R) brand name. Mycom, headquartered in Cincinnati, Ohio, is on the web at www.mycom.com. for additional information contact: Mycom Group Investor Relations pr@mycom.com 513-333-7003
NOTE: This Mycom Group press release may contain certain forward-looking statements within the meaning of the "safe harbor" provisions of the federal securities laws. Such statements are subject to certain risks and uncertainties that could cause actual results or outcomes to differ materially from those currently anticipated. Important risks and uncertainties, among others, that could cause actual results to differ materially from those described in these statements include the strength of the U.S. economy and other factors. For additional information about Mycom Group, Inc. please refer to the current Forms 10-KSB and 10-QSB as filed with the Securities and Exchange Commission.
