WESTERVILLE, Ohio, Aug. 27, 2012 /PRNewswire/ -- The Guitammer Company (OTC BB: GTMM), a leader in low frequency sound and creator of the award-winning line of ButtKicker®-brand low frequency audio transducers that provide an immersive "4D" entertainment experience for audiences, announced it successfully completed its Private Placement offering on July 31, 2012. The offering was a "unit" offering where 6.34 million restricted shares of its common stock at $0.25 per share and warrants to purchase 6.34 million additional shares of its common stock were sold, generating approximately $1.6 million of new equity growth capital for the Company. The warrants to purchase additional shares are exercisable at $0.36 per share for two years following their issue date. The shares and warrants were offered in units in a private offering to accredited investors pursuant to the private offering exemption, Section 4(2), of the Securities Act of 1933, as amended.
In addition, the Company exchanged and retired more than $1.45 million of existing debt for approximately 8.7 million shares of its common stock, with the vast majority of the debt valued at $0.25 per share. Guitammer intends to use the net proceeds from the offering for working capital and general corporate purposes including the advancement of its ButtKicker Live broadcast technology platform. Giving effect to the transactions noted above, Guitammer now has approximately 66.2 million common shares outstanding and the Company's outstanding debt is approximately $1.83 million.
Mark Luden, CEO of Guitammer stated, "We appreciate the confidence that investors have shown in Guitammer and our plans to leverage our proprietary low frequency audio technology into new areas of growth. The proceeds from the private placement have already significantly improved our balance sheet and financial flexibility as the retirement of a significant portion of our outstanding debt has reduced interest expense. The cash proceeds from the offering also provide capital to further grow our core business product line and accelerate the development and commercialization of our patented ButtKicker LIVE! broadcast technology.
"We continue to expect full year 2012 revenues for our core products will significantly exceed the levels achieved in 2011 and now anticipate generating positive cash flow from operations on a quarterly basis in the fourth quarter of fiscal 2012. This operating momentum is expected to be complemented by the commercialization of several new core business products which are on schedule for launch in 2013.
"Significantly, as we move into the testing phase of our ButtKicker LIVE! broadcast technology later this year, we expect to generate initial revenues from this high margin and scalable business opportunity in 2013. The growth capital raised in the private placement and our near-term expectations to generate cash from operations is building a foundation from which we can achieve sustainable long-term growth."
Updated Investor Website Provides Added Information and Resources
Guitammer recently updated its corporate website to provide investors with up-to-date information on strategic insights, corporate developments, regulatory filings and other investor resources such as corporate presentations. The website – www.guitammer.com – will be continually updated with new information and developments as they occur.
About The Guitammer Company
The Guitammer Company is a leader in low frequency sound products and technology. Its innovative and award winning line of patented ButtKicker-brand low frequency audio transducers let users feel low-frequency sound (bass). ButtKicker brand products are used around the world by leading entertainment and theater companies such as AMC, IMAX and Disney in movie theaters and attractions; by world-famous musicians; in home theaters, simulators and for car audio. ButtKicker brand products are distributed by Pearl Drums for musicians under the trade name, "Pearl's Throne Thumper by ButtKicker", and factory installed in home theater seating by Palliser Furniture. ButtKicker brand products' patented design makes them musically accurate, powerful and virtually indestructible. The Company is headquartered in Westerville, OH.
The Guitammer Company's patented broadcast technology, ButtKicker LIVE! enables the excitement, impact and feeling of sporting events to be broadcast along with the sound and video. ButtKicker LIVE! puts you into the action, whether you're at home or at the event. ButtKicker Live! technology is available for cable, satellite, fiber optic, IPTV and over-the-air broadcast and has been successfully tested with several major content (sports) providers. ButtKicker® and ButtKicker Live!® are registered trademarks of The Guitammer Company. For additional information, visit www.thebuttkicker.com and www.shakemycouch.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. Investors are cautioned that all forward-looking statements involve risks and uncertainty, including without limitation, the ability of the Company to successfully implement its turnaround strategy, changes in costs of raw materials, labor, and employee benefits, as well as general market conditions, competition and pricing. Although the Company believes that the assumptions underlying the forward-looking statements contained herein are reasonable, any of the assumptions could be inaccurate, and therefore, there can be no assurance that the forward-looking statements included in this press release will prove to be accurate. In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as representation by the Company or any other person that the objectives and plans of the Company will be achieved. In assessing forward-looking statements included herein, readers are urged to carefully read those statements. When used in this press release, the words "estimate," "anticipate," "expect," "believe," and similar expressions are intended to be forward-looking statements.
Neither the shares nor the shares of common stock issuable pursuant to the warrant issuance have been registered under the Securities Act of 1933, as amended, or any state securities laws and unless so registered may not be offered or sold in the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act of 1933, as amended, and applicable state securities laws. This press release does not constitute an offer to sell or the solicitation of an offer to buy securities.
For More Information Contact:
SOURCE The Guitammer Company