SOURCE: M Line Holdings, Inc.

M Line Holdings, Inc.

October 16, 2014 08:30 ET

M Line Holdings, Inc. Signs Letter of Intent With The Byran Company, Inc.

This Acquisition Plus the Prior Announced Blue Star Machinery Will Bring M Line's Revenue to In Excess of $25M, With an EBITDA Expected to Be $5M +

ANAHEIM, CA--(Marketwired - Oct 16, 2014) - M Line Holdings, Inc. (PINKSHEETS: MLHC) ("M Line" or the "Company") today announced that it has signed a letter of intent with the principals of The Byran Company, Inc. ("Byran"). Byran is located in Huntington Beach and has been in business since 1986. Byran is a machine tool shop specializing in complex engineered precision metal parts for the aerospace plus medical industries and will complement M Line's Precision division. With Byran, M Line will have some 110 CNC machines, making M Line and important factor in this segment of its industry.

The cost of the Byran transaction will be approximately $5,100,000 depending on the value of inventory and receivables on the closing date. M Line will, at close, pay $3.1 million with the principals of Byran carrying $2.1 million payable over 5 years at 4% interest, payments commencing three months after close. Mr. Kelly Dunagan will sign a 9 month employment contract after which he will be available on a consulting basis as needed. 

Bruce Barren, CEO of M Line, commented, "We continue to fulfill our commitments to our shareholders to build the New M Line through internal growth and acquisitions. We are beginning to build momentum and we have additional planned acquisition targets. Your Management determination continues to make M Line a success through acquisitions and the ability to expand our customer base, thus adding shareholder value with as minimal dilutive effect to shareholder ownership. M Line continues with its forward momentum objectives."

Tony Anish, COO of M Line, stated, "Our vision has been to expand both the machine sales and precision parts divisions. The acquisition of Blue Star Machinery is just another step forward. Blue Star gives us a Midwest presence which will provide us with freight savings and an improved customer base. In the near future we plan to either add or open an East Coast location giving our group the ability to cover the whole US. Through Byran we gain further momentum for the acquisition of similar size machine tool shops. Byran adds enormous potential for growth within the aerospace plus medical industries and will complement our existing customer base. We are going to accelerate our resources to bring M Line as quickly as possible to the $50 million revenue."

About M Line Holdings, Inc.

M Line is a leading manufacturer of products, assemblies and services to the precision high tech segment of both the aerospace and medical industries as well as selling high end pre-owned Japanese Computer Numerically Controlled ("CNC") Machine Tool Equipment with key customers that include Panasonic Avionics, UTC Aerospace Systems, Beckman Coulter, BE Aerospace and a strategic alliance with Structural Integrity Engineering. 

For more information on M Line see our web site at www.mlineholdings.com

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This press release may contain forward-looking information within the meaning of Section 21E of the Security Exchange Act of 1934, as amended (the Exchange Act), including all statements that are not statement of historical fact regarding the intent, belief or current expectations of the company, its directors or its officers with respect to, among other things: (i) the company's financing plans; (ii) trends affecting the company's financial conditions or results of operations; (iii): the company's growth strategy and operating strategy; and (iv) the declaration and payment of dividends.

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