DFW AIRPORT, Texas--(BUSINESS WIRE)--American Locker Group Incorporated (OTCQB: ALGI), a recognized leader in secure storage solutions, has previously reported that it has been awarded an exclusive three-year contract to produce parcel delivery lockers for the largest provider of parcel and mail delivery services in the United States. The Company is pleased to announce that it has received product approval and will commence production immediately. This contract calls for initial volume of $1.7 million of product to be delivered during the first 90 days after product approval.
In conjunction with this approval, the Company has raised $200,000 in working capital to support this contract through the sale of 40,000 shares of a new class of Series D Preferred Stock. Purchasers of this preferred stock are accredited investors who management determined could act quickly to provide the necessary working capital to the Company, and include existing stockholders of the Company, three of whom are also directors.
Each share of preferred stock is convertible into five shares of the Company’s common stock at a conversion price of $1.00 per common share, accrues dividends at the rate of 6% and may be redeemed at the Company’s option. Upon conversion of the preferred stock, holders shall also be entitled to purchase shares of common stock held by the Company in the treasury.
“After many years we are pleased to be working once again with this very important strategic customer. We are excited to be starting this contract after many months of product development and testing,” said Anthony Johnston, President, American Locker. “There are other strategic opportunities like this on the horizon and to ensure we can capture these opportunities we have determined, given the current situation, that we must embark on a new path to recapitalize the Company in a structure that is appropriate for a company of our size. We will be aggressively looking for opportunities in the coming months to bring new and replacement capital into the Company and reduce our public reporting costs.”
He added, “We are fortunate that we have a group of committed stockholders who were willing to step-up and provide financial support to the Company at this critical time. Funds from their purchase of shares of Series D Preferred Stock are an essential component of the Company’s working capital and will enable the Company to meet the needs of this new and important contract.”
In the interest of providing Company stockholders and potential investors with information regarding the Company, including the Company’s assessment of its future plans and operations, certain statements included in this press release may constitute forward-looking information or forward-looking statements (collectively, “forward-looking statements”). All statements contained herein that are not clearly historical in nature are forward-looking, and the words “anticipate”, “believe”, “expect”, “estimate” and similar expressions are generally intended to identify forward-looking statements. Actual events or results may differ materially. Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, it cannot guarantee future results, levels of activity, performance or achievement since such expectations are inherently subject to significant business, economic, competitive, political and social uncertainties and contingencies. Many factors could cause the Company’s actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of, the Company and the foregoing list of important factors is not exhaustive. These forward-looking statements made as of the date hereof disclaim any intent or obligation to update publicly any forward-looking statements, whether as a result of new information, future events or results or otherwise. Company stockholders and potential investors should carefully consider the information contained in the Company’s filings with United States securities administrators at www.sec.gov before making investment decisions with regard to the Company.
About American Locker Group Incorporated
American Locker is a premier metal fabricator of secure storage solutions under the American Locker and Canadian Locker brands. The Company is best known for manufacturing and servicing the widely-utilized key and lock system with the iconic plastic orange cap. The Company also has a growing precision sheet metal fabrication business. Its Security Manufacturing Corporation subsidiary is a leading provider of multi-tenant mailboxes.
Further information about American Locker is available at www.americanlocker.com.