ADDvantage Technologies Announces Forgiveness of SBA PPP Loan

Rhea-AI Summary

ADDvantage Technologies Group (NASDAQ: AEY) announced the forgiveness of its $2.9 million Paycheck Protection Program (PPP) loan by the Small Business Administration (SBA). This forgiveness will be recorded as a gain on debt extinguishment in the financial results for Q4 ending September 30, 2021. The company operates through its subsidiaries, providing communications infrastructure services and equipment across wireless and telecommunications segments.

Positive

• $2.9 million PPP loan forgiven, improving cash flow and balance sheet.
• The gain on debt extinguishment will boost Q4 financial results.

Negative

• None.

CARROLLTON, Texas, Sept. 02, 2021 (GLOBE NEWSWIRE) -- ADDvantage Technologies Group, Inc. (NASDAQ: AEY) (“ADDvantage Technologies” or the “Company”) today announced that its Paycheck Protection Program (“PPP”) loan has been forgiven.

In April 2020, the Company received funding from the Small Business Administration’s (“SBA”) Paycheck Protection Program in the amount of $2.9 million. The Company was notified by its primary lender that it has received 100% loan forgiveness from the SBA on the PPP loan. The loan forgiveness of $2.9 million will be recognized as a gain on debt extinguishment in the financial results for the fourth fiscal quarter, which is the period ending September 30, 2021.

About ADDvantage Technologies Group, Inc.

ADDvantage Technologies Group, Inc. (Nasdaq: AEY) is a communications infrastructure services and equipment provider operating a diversified group of companies through its Wireless Infrastructure Services and Telecommunications segments. Through its Wireless segment, Fulton Technologies provides turn-key wireless infrastructure services including the installation, modification and upgrading of equipment on communication towers and small cell sites for wireless carriers, national integrators, tower owners and major equipment manufacturers. Through its Telecommunications segment, Nave Communications and Triton Datacom sell equipment and hardware used to acquire, distribute, and protect the communications signals carried on fiber optic, coaxial cable and wireless distribution systems. The Telecommunications segment also offers repair services focused on telecommunication equipment and recycling surplus and related obsolete telecommunications equipment.

ADDvantage operates through its subsidiaries, Fulton Technologies, Nave Communications, and Triton Datacom. For more information, please visit the corporate web site at www.addvantagetechnologies.com.

Cautions Regarding Forward-Looking Statements

The information in this announcement may include forward-looking statements. All statements, other than statements of historical facts, which address activities, events or developments that the Company expects or anticipates will or may occur in the future, are forward-looking statements. These statements are subject to risks and uncertainties, which could cause actual results and developments to differ materially from these statements. A complete discussion of these risks and uncertainties is contained in the Company’s reports and documents filed from time to time with the Securities and Exchange Commission.

For further information:
Hayden IR
Brett Maas
(646) 536-7331
aey@haydenir.com

FAQ

What impact does the PPP loan forgiveness have on ADDvantage Technologies (AEY)?

The forgiveness of the $2.9 million PPP loan will improve ADDvantage Technologies' cash flow and financial position.

When will ADDvantage Technologies report the loan forgiveness in its financial results?

The $2.9 million loan forgiveness will be recognized in the financial results for Q4, ending September 30, 2021.

How much was the PPP loan received by ADDvantage Technologies?

ADDvantage Technologies received a PPP loan of $2.9 million from the Small Business Administration.