NewMediaWire
2020-04-21
MILTON, NY - (NewMediaWire) - April 21, 2020 - Sono-Tek Corporation (OTCQX: SOTK), the leading
developer and manufacturer of ultrasonic coating systems, today announced that on
April 17, 2020, the Company was approved for a loan in the amount of $1,001,640
under the Paycheck Protection Program (“PPP”). The PPP, established as part of
the Coronavirus Aid, Relief and Economic Security Act (“CARES Act”), provides
for loans to qualifying companies and is administered by the U.S. Small
Business Administration (the “SBA”).
The
loan has a two-year term, bears interest at the rate of 1.0% per annum, and may
be prepaid at any time without payment of any premium. No payments of principal
or interest are due during the initial six-month period beginning on the date
of the Note (the “Deferral Period”). Beginning in the seventh month following
the date of the Note, the Company is required to make monthly payments of
principal and interest until maturity, for any portion of the loan that is not
forgiven.
Under
the terms of the CARES Act, PPP loan recipients can apply for and be granted
forgiveness for all or a portion of the loan granted under the PPP, with such
forgiveness to be determined, subject to limitations, based on the use of the
loan proceeds for payment of payroll costs and any payments of mortgage
interest, rent, and utilities. While the Company currently believes that its
use of the loan proceeds will meet the conditions for forgiveness under the
PPP, no assurance is provided that the Company will obtain forgiveness of the
loan in whole or in part.
“The
PPP funds that were awarded to Sono-Tek under the CARES Act should ensure that
our staff and operations are fully funded during this crisis period. This will
allow us to continue to deliver our ultrasonic coating systems that are
important to the ongoing operation of many vital industries, including the
manufacturing process for several types of rapid diagnostic COVID-19 test kits,”
said Dr. Christopher L. Coccio, Sono-Tek’s Chairman and CEO.
About
Sono-Tek
Sono-Tek
Corporation is the leading developer and manufacturer of ultrasonic coating
systems for applying precise, thin film coatings to protect, strengthen or
smooth surfaces on parts and components for the microelectronics/electronics,
alternative energy, medical and industrial markets, including specialized glass
applications in construction and automotive.
The
Company’s solutions are environmentally-friendly, efficient and highly
reliable, and enable dramatic reductions in overspray, savings in raw material,
water and energy usage and provide improved process repeatability, transfer
efficiency, high uniformity and reduced emissions.
Sono-Tek’s
growth strategy is focused on leveraging its innovative technologies,
proprietary know-how, unique talent and experience, and global reach to further
develop thin film coating technologies that enable better outcomes for its
customers’ products and processes. For further information, visit
www.sono-tek.com.
Safe
Harbor Statement
This
news release contains forward looking statements regarding future events and
the future performance of Sono-Tek Corporation that involve risks and
uncertainties that could cause actual results to differ materially. These
factors include, among other considerations, general economic and business
conditions; political, regulatory, tax, competitive and technological
developments affecting our operations or the demand for our products, including
probable negative effects on operations from the COVID-19 pandemic and related
business and social lock-downs; forgiveness of our Paycheck Protection Program
loan; the imposition of tariffs; timely development and market acceptance of
new products and continued customer validation of our coating technologies;
adequacy of financing; capacity additions, the ability to enforce patents;
maintenance of operating leverage; maintenance of increased order backlog,
including effects of any COVID-19 related cancellations; consummation of order
proposals; completion of large orders on schedule and on budget; continued
sales growth in the specialty glass and portable electronics markets;
successful transition from primarily selling ultrasonic nozzles and components
to a more complex business providing complete machine solutions and higher
value subsystems; and realization of quarterly and annual revenues within the
forecasted range. We refer you to documents that the company files with the
Securities and Exchange Commission, which includes Form 10-K and Form 10-Qs
containing additional important information.
For
more information, contact:
Stephen
J. Bagley
Chief
Financial Officer
Sono-Tek
Corporation
info@sono-tek.com
Investor
Relations:
Stephanie
Prince
PCG
Advisory
(646)
762-4518
sprince@pcgadvisory.com