At the request of CEOcast.com Irwin Gruverman, CEO and Chairman of MFIC Corporation was interviewed on April 30, 2004 by Michael Wachs on the subject of MFIC's recent completion of its successful financial restructuring and its ongoing contribution to American manufacturing excellence in a range of products. MFIC provides the leading edge high performance mixing and formulation equipment available to the biotech, pharmaceutical, coatings, paints, chemical, and food industries.
Mr. Gruverman focused on the financial re-engineering of MFIC which occurred in the last few months. As described in recent press releases, the Morehouse-COWLES Division assets were sold to allow a focus on the core Microfluidizer systems business; restructured bank lines moved from an asset-based line which limited investment in new initiatives to a four-year term loan and cash-flow based credit line; a completed a PIPE financing to raise $2.9MM net, with warrants outstanding now which could raise an additional $3MM. The Company is now out of debt (on a net liability basis) and can commit more than $2MM to new initiatives.
Proceeds will be committed to several programs. Mr. Gruverman stated "We have hired and will continue to seek key people in engineering, marketing/sales and R&D functions. We are initiating several exciting projects using our Multiple Stream Mixer/Reactor (MMR) technology, and plan a multi-year effort to establish MFIC as the leader in nanotechnology materials manufacturing. Marketing and development of systems and applications will be included in this effort."
"Our core Microfluidizer processing system business will commit to increase our market penetration from the few percent we now enjoy to several times that level. We plan to have industry specialists to find applications in many industries for our unique high pressure fluid processing technology."
"The Board of Directors includes individuals with banking, marketing, technical and financing expertise and is active in enhancing a skilled management team in its performance."
"Marketing and sales are centralized and a strong core team leads an extensive network of agents and distributors in North America, Europe and Asia. About 80% of Microfluidizer processor system sales are to the pharmaceutical and biotech industries. Most sales are to Fortune 500 companies."
"We have restarted our Investor Relations efforts to create an awareness of our new position as a financially-sound business with a strong core and a new proprietary MMR component with the potential to propel us to a much higher value level over time," commented Mr. Gruverman. "We are seeking to resume listing on a National exchange."