MamaMancini’s Secures Expanded $10.5 Million Credit Facility from M&T Bank for Acquisition Financing
Expanded Credit Facility Supplements Over $4 Million Cash Balance to Finance Potential Acquisitions
EAST RUTHERFORD, NJ, Aug. 30, 2021 (GLOBE NEWSWIRE) -- MamaMancini's Holdings, Inc. (NASDAQ: MMMB), a marketer of specialty pre-prepared, frozen and refrigerated food products, today announced that it has secured an expanded credit facility with M&T bank in the amount of $10.5 million for the purpose of acquisition financing at an interest rate of 3.5% above one-day LIBOR.
Previously, MamaMancini’s maintained an undrawn $4.5 million working capital credit facility that can be drawn through June 2023 – with the additional $6.0 million expansion provided for the purpose of acquisition financing, which can be drawn through early August 2023 with a maturity date of 60 months from the date of draw down. Any proposed acquisition will need the approval of M&T bank to utilize this funding. Additional funding may be available depending upon the financing needs of a proposed acquisition
“M&T Bank has been an ideal financial partner for us, and we appreciate their continued support as we accelerate our growth strategy through acquisition, “said Carl Wolf, Chairman and Chief Executive Officer of MamaMancini’s. “Taking a look at the attractive sales multiples in the food space combined with our cash balance of over $4 million and this new expanded credit facility, we are confident our new acquisition program will have sufficient capital to fund its pipeline of accretive prospects.
“We are currently seeking complementary food product companies with sales in the $12 to $20 million per year range, generating positive EBITDA with a product that is symbiotic to the Company’s existing retail, club store and food service distribution network. We hope to have further material updates on this front in the near-term as we advance candidates through our extensive due diligence pipeline – I look forward to continued shareholder value creation in the months ahead as we continue our rapid pace of operational execution,” concluded Wolf.
About MamaMancini’s Holdings, Inc.
MamaMancini's Holdings, Inc. (NASDAQ: MMMB) is a marketer and distributor of specialty prepared, refrigerated and frozen all-natural Italian foods. MamaMancini’s product portfolio consists of over 20 products including meatballs, meat loaf, chicken parmesan, sausages and pasta bowl kits, with beef, turkey, chicken and pork varieties. The Company’s products are sold in over 45,000 locations nationwide, including at well-known retailers such as Sam’s Club, Whole Foods, Publix, Costco and Albertsons, as well as through national distributors such as Sysco and United Natural Foods. The Company also regularly maintains a direct-to-consumer presence through presentations on QVC. For more information, please visit www.mamamancinis.com.
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 10-K for the fiscal year ended January 31, 2021 and other filings made by the Company with the Securities and Exchange Commission.
Investor Relations Contact:
Lucas A. Zimmerman
Director
MZ Group - MZ North America
(949) 259-4987
MMMB@mzgroup.us
www.mzgroup.us
