EAST RUTHERFORD, NJ--(Marketwired - Sep 8, 2016) - MamaMancini's Holdings, Inc. (OTCQB: MMMB), a marketer of specialty pre-prepared, frozen and refrigerated all natural food products (as defined by the United States Department of Agriculture), announced today the extension of financing agreements with two lenders.
The Company extended its asset-based lending agreement with Entrepreneur Growth Capital ("EGC") effective September 1, 2016. Asset-based lending costs through EGC are expected to be reduced through new lower rates and fees reflecting the Company's recent financial results. This extension of its asset based lending facility will expire on September 30, 2018.
The Company and EGC also restructured a long-term note with EGC effective September 1, 2016, from $360,000 to $700,000 which is to be paid back in equal installments through September 30, 2021.
Additionally, the Company signed an agreement with Manatuck Hill Partners, effective October 31, 2016, to extend its existing senior note from December 19, 2016 to September 30, 2017. Terms of the note are the same except that the Company will begin making payments of $30,000 to $50,000 per month against the principal of the note beginning November 30, 2016. Manatuck Hill has agreed to remove its convertibility rights under this note and the Company will pay Manatuck Hill a $50,000 origination fee at closing.
Carl Wolf, chairman and chief executive officer of MamaMancini's Holdings, said, "We are pleased with the extensions on these financing sources. We appreciate the confidence shown by these lenders as we continue to successfully execute on our strategic business plan. The improving financial results in recent quarters sets the stage for more consistent performance in the coming years. We look forward to the many great opportunities ahead."
MamaMancini's is a marketer and distributor of a line of beef meatballs with sauce, turkey meatballs with sauce, chicken meatballs with sauce, pork meatballs with sauce, and other similar Italian products. The Company's sales have been growing on a consistent basis as the Company expands its distribution channel, which includes major retailers such as Costco, Sams Clubs, Publix, Shop Rite, Price Chopper, Jewel, SaveMarts, Luckys, Lunds/Byerly's, SuperValu, Raley's, Whole Foods, Shaw's Supermarkets, Kings, Key Foods, Stop-n-Shop, Giant Stores, Giant Eagle, King Kullen, Food Town, Kroger, Safeway, Albertsons, Lowes, Nash Finch, Spartan Stores, Shoppers, Marsh's Supermarkets, Central Markets, Weis Markets, Ingles, Market Basket, Roche Brothers and The Fresh Market.
Forward Looking Statements
This press release may contain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934. "Forward-looking statements" describe future expectations, plans, results, or strategies and are generally preceded by words such as "may," "future," "plan" or "planned," "will" or "should," "expected," "anticipates," "draft," "eventually" or "projected." You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in the Company's most recent 10-K and other filings made by the Company with the Securities and Exchange Commission.