Orbit International raises $4.08M in private placement, lands $6M credit line
What's the deal? Orbit InternationalDealroom has a profile for this one. Try Dealroom →, a Hauppauge, New York-based electronics manufacturer and software provider, has completed a $4.08 million private placement led by its largest shareholder, Elkhorn Partners. The company issued 1,630,000 shares of common stock. It separately closed a new revolving credit line of up to $6 million with asset-based lender Merchant Financial CorporationDealroom has a profile for this one. Try Dealroom →.
Why now? Orbit used the new credit facility to pay off the balance owed under its previous line with M&T Bank. The private placement proceeds will fund working capital, litigation-related expenses, and further debt paydown.
What's the endgame? Orbit builds custom electronic devices and subsystems for military, industrial, and commercial uses through plants in Hauppauge and Carson, California. Its Power Group designs AC power supplies, frequency converters, inverters, and other power products. The company said it may also use proceeds to support growth opportunities it is pursuing.
What they're saying: "The proceeds from the private placement have significantly strengthened our balance sheet and combined with the additional borrowing availability under our line of credit have substantially enhanced our liquidity," said Mitchell Binder, president and chief executive officer.
The signal: At $4.08 million, the raise sits in the smaller tier of disclosed deals, placing it in roughly the 18th percentile by amount. For a small-cap manufacturer trading on the OTCID Basic Market, the combined financing is less about expansion firepower than about shoring up liquidity and clearing bank debt — a defensive move to steady the balance sheet.
Read more: ae.marketscreener.com
Image credit: jurvetson
