$2.5 Million Closed, $5.0 Million Subject to Closing Conditions
Additional Working Capital Supports Increasing Backlog of Hospitality Business
Applied UV, Inc. (NasdaqCM: AUVI) (“Applied UV” or the “Company”), a pathogen elimination technology company that applies the power of narrow-range ultraviolet light (“UVC”) for surface areas and catalytic bioconversion technology for air purification to destroy pathogens safely, thoroughly and automatically today announced it has entered into agreements for $7.5 million in debt financing. This additional capital is expected to be used to support the Company’s growth initiatives.
Max Munn, Applied UV President, and Director, commented, “New debt financing provides the Company with additional runway to execute our growth plans including increasing production at our recently acquired 100,000 square foot manufacturing facility located in Brooklyn, New York. We believe industry trends are moving towards domestic production at an increasing rate as producers look for solutions to supply chain challenges in China and to avoid export tariffs. With our Brooklyn facility, the Company is well positioned to circumvent these challenges and ensure the timely delivery of products from an increasing backlog of orders in our Munnworks hospitality business.”
“Furthermore, we continue to evaluate and pursue synergistic acquisitions that align with our existing disinfection business and provide opportunities to improve our financial profile,” added Munn. “As we noted in our previous quarterly conference calls, the Company expects to execute a strategic contract manufacturing partnership with a global Fortune 100 company that will enable us to consolidate, streamline and vastly improve the manufacturing process of our Scientific Air and Airocide disinfection portfolio to include solving existing supply chain constraints, R&D, next generation product development and customer support. We hope to have more information to share with the investment community in the coming weeks.”
On October 7, 2022, Applied UV entered a securities purchase agreement whereby a single investor purchased an 18 month $2,807,500 Redeemable Note from the Company for $2,500,000. The Note bears interest at a rate of 8% per annum.
On October 28, 2022, the Company was fully vetted and approved by Pinnacle Bank for a $5,000,000 Non-Dilutive Asset Based Line of Credit. The closing is subject to customary negotiations of final loan documents. Final Documentation and closing are anticipated during the third week of November 2022.
About Applied UV
Applied UV is focused on the development and acquisition of technology that address infection control in the healthcare, hospitality, commercial and municipal markets. The Company has two wholly owned subsidiaries - SteriLumen, Inc. (“SteriLumen”) and Munn Works, LLC (“Munn Works”). SteriLumen’s connected platform for Data Driven Disinfection™ applies the power of ultraviolet light (UVC) to destroy pathogens safely, thoroughly, and automatically, addressing the challenge of healthcare-acquired infections ("HAIs"). Targeted for use in facilities that have high customer turnover such as hospitals, hotels, commercial facilities, and other public spaces, the Company’s Lumicide™ platform uses UVC LEDs in several patented designs for infection control in and around high-traffic areas, including sinks and restrooms, killing bacteria, viruses, and other pathogens residing on hard surfaces within devices’ proximity. The Company’s patented in-drain disinfection device, Lumicide Drain, is the only product on the market that addresses this critical pathogen intensive location. SteriLumen’s Airocide® air purification devices are research backed, clinically proven, and developed for NASA with assistance from the University of Wisconsin. Airocide® is listed as an FDA Class II Medical device, utilizes a proprietary photocatalytic (PCO) bioconversion technology that draws air into a reaction chamber that converts damaging molds, microorganisms, dangerous airborne pathogens, destructive VOCs, allergens, odors and biological gasses into harmless water vapor and green carbon dioxide without producing ozone or other harmful byproducts. Airocide® applications include healthcare, hospitality, grocery chains, wine making facilities, commercial real estate, schools, dental offices, post-harvest, grocery, cannabis facilities and homes. For more information about Applied UV, Inc., and its subsidiaries, please visit the following websites: https://www.applieduvinc.com
The information contained herein may contain “forward‐looking statements.” Forward‐looking statements reflect the current view about future events. When used in this press release, the words “anticipate,” “believe,” “estimate,” “expect,” “future,” “intend,” “plan,” or the negative of these terms and similar expressions, as they relate to us or our management, identify forward‐looking statements. Such statements include, but are not limited to, statements contained in this press release relating to the view of management of Applied UV concerning its business strategy, future operating results and liquidity and capital resources outlook. Forward‐looking statements are based on the Company’s current expectations and assumptions regarding its business, the economy and other future conditions. Because forward–looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. The Company’s actual results may differ materially from those contemplated by the forward‐looking statements. They are neither statements of historical fact nor guarantees of assurance of future performance. We caution you therefore against relying on any of these forward‐looking statements. Factors or events that could cause the Company’s actual results to differ may emerge from time to time, and it is not possible for the Company to predict all of them. The Company cannot guarantee future results, levels of activity, performance, or achievements. Except as required by applicable law, including the securities laws of the United States, the Company does not intend to update any of the forward‐looking statements to conform these statements to actual results.