Message #8 From:
Stock News Bot Date: December 12, 2005 04:11:00 AM
MYCM News Mycom Group Secures Credit Facility and Financing for 2006 (12-12-05)
CINCINNATI--(BUSINESS WIRE)--Dec. 12, 2005--Mycom Group, Inc., a software sales and professional technology services company, whose stock is traded on the over the counter market (OTCBB:MYCM), announced the signing of a twelve month agreement with First Financial Bank, which provides a $650,000 line of credit for working capital and a long term note and credit cards totaling $349,000. First Financial has served as Mycom's primary bank since March 31, 2004.
The Bank financing agreement follows several actions taken by Mycom during the second half of 2005 to restructure the Company's financing, reduce debt and improve working capital.
On 9-28-05 Mycom announced the Company's two top officers, agreed to forgive $536,370 of the $905,502 Notes payable to them. This debt originated in 2001 when the individuals 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.
The Company also 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.
In August of 2005, Mycom sold its managed services business in an effort to reduce its cost structures, to bring working capital into the Company and to curtail future expenditures related to software development.
With debt reduction and the line of credit the Company has developed a new business plan which includes seeking to improve profitability by growing its legacy software reseller business. Management expects sales of software to increase in 2006 as the Company refocuses its efforts on the sale of software.
About Mycom Group Inc.
The Mycom Group, Inc. is a software sales and professional technology services provider to businesses and organizations throughout North America. It markets a wide range of software, hardware, enterprise solutions and technology services. 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.
