EXHIBIT 99.1
FOR IMMEDIATE RELEASE For Additional Information
Contact: Daniel Rooney
Chairman & CEO
(614) 486-0261
Robert Lentz
(614) 876-2000
SUPERCONDUCTIVE COMPONENTS, INC.
ANNOUNCES COMPLETION OF FINANCINGS
COLUMBUS, Ohio (July 1, 2003) Superconductive Components, Inc. (OTCBB: SCCI),
today announced the completion of two private financing transactions on June 30,
2003, including the issuance of convertible promissory notes for $600,000 of
cash and redemption of the Company's entire $129,770 obligation on its Series A
redeemable convertible preferred stock.
Four present shareholders of the Company, including three adult children of
Edward R. and Ingeborg V. Funk, the founders of the Company, and Windcom
Investments SA (Lugano, Switzerland) invested $600,000 of new money in the
Company. The holders of the Series A preferred stock, two adult children of
Edward R. Funk, agreed to the redemption of the Series A preferred stock in
exchange for convertible promissory notes in the aggregate amount of $129,770,
which represented the face amount of the preferred plus accrued and unpaid
dividends and interest.
The principal and interest on the $729,770 of new convertible promissory notes
are payable June 30, 2006. If the Company completes an equity financing for at
least $500,000 in the next year, the notes shall automatically convert to common
stock at the same per share price as the equity financing, and thereafter the
notes shall convert to common stock at the option of the holders at $2.00 per
share. Interest on the notes will accrue at the bank prime rate. The notes are
secured by liens on the Company's assets. The note holders were also granted an
aggregate of 146,302 five year warrants to purchase shares of common stock of
the Company at $1 per share, with 60,520 vested immediately and 87,782 vesting
monthly over 36 months while the notes remain outstanding.
The Company used $100,000 of the note proceeds to pay off its bank line of
credit which terminated on June 30, 2003, and plans to use approximately
$300,000 to finance its move to a new leased facility and approximately $200,000
for general corporate purposes.
Dan Rooney, Chairman and Chief Executive Officer, commented, "We are pleased to
complete these financings, which simplify our balance sheet and accelerate
implementation of the Company's strategic plan. These funds will be used to
support our growth and enable us to produce targets more effectively for the
emerging lithium thin film battery market. SCI Engineered Materials, the sole
operating unit of the Company, is a leader in the production of materials for
lithium thin film batteries. Thin film batteries are expected to be used in a
wide
range of applications in the future. Currently, they are being evaluated for
active RFID tags and smart cards. The Company plans to raise additional capital
to respond to long-term opportunities in this market."
Superconductive Components, Inc. operates through SCI Engineered Materials and
manufactures advanced ceramics such as superconductors, ferroelectric and
optical materials for use in wire, cable, batteries, wireless and fiber optics
systems. The Company also provides materials for thin film applications used in
photovoltaics, electronic switches, hardness and decorative coatings. The
Company is a global materials supplier with clients in more than 40 countries.
Additional information is available at http://www.sciengineeredmaterials.com.
This press release contains certain 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, as amended, which are intended to be
covered by the safe harbors created thereby. Those statements include, but are
not limited to, all statements regarding intent, beliefs, expectations,
projections, forecasts, and plans of the Company and its management, and
specifically include statements regarding use of the funds for working capital
to support the Company's growth and move to a new manufacturing facility later
this year, accelerated implementation of the Company's strategic plan, the more
effective production of targets for the emerging thin film battery market,
expected use of thin film batteries in a wide range of applications in the
future, evaluation of thin film batteries in active RFID tags and smart cards,
and the Company's plans to raise additional capital to respond to long-term
opportunities in the thin film battery market (paragraphs 4 and 5). These
forward-looking statements involve numerous risks and uncertainties, including,
without limitation: the availability of a new leased facility and the ability to
move to such facility at the anticipated cost, the development of the thin film
battery market, the impact of competitive products and services, the ability to
adapt to technological changes, the availability of capital, and other risks and
uncertainties detailed from time to time in the Company's Securities and
Exchange Commission filings, including the Company's Annual Report on Form
10-KSB for the year ended December 31, 2002. One or more of these factors have
affected, and could in the future affect, the Company's business and financial
results in future periods and could cause actual results to differ materially
from plans and projections. Therefore, there can be no assurances that the
forward-looking statements included in this press release will prove to be
accurate. In light of the significant uncertainties in the forward-looking
statements included herein, the inclusion of such information should not be
regarded as a representation by the Company, or any other persons, that the
objectives and plans of the Company will be achieved. All forward-looking
statements made in this press release are based on information presently
available to the management of the Company. The Company assumes no obligation to
update any forward-looking statements.
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