NuWay Medical Receives Second Installment of Loan
Wednesday July 2, 3:45 pm ET
LAGUNA HILLS, Calif., July 2 /PRNewswire-FirstCall/ -- NuWay Medical, Inc. (OTC: NMED - News) announced today that it has received the $100,000 second installment of its loan from Augustine II, LLC. On June 13, 2003, Augustine II agreed to loan the Company a total of $420,000 and, on that date, made the first installment of $250,000. Augustine II has agreed to extend to the Company the $70,000 balance of the loan by August 1, 2003.
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Commenting on Augustine's investment, Dennis Calvert, NuWay's CEO and President, said, "Augustine and its affiliates have, over the past few years, made significant investments in NuWay. These investments, most of which were made prior to current management taking office, have declined in value. We view Augustine's willingness to invest additional funds at this point as a vote of confidence in current management and in our revamped business plan."
Principal and interest (at an annual rate of 10%) on the loan are due in full on February 29, 2004, subject to certain requirements that the Company make mandatory prepayments of the loan from the proceeds of any asset sales outside of the ordinary course of business and, on a quarterly basis, from positive cash flow. In addition, the Company may prepay all or any portion of the loan at any time without premium or penalty. As additional consideration for agreeing to extend to the Company the $420,000 loan, Augustine received five-year warrants to purchase up to 6,158,381 shares of the Company's common stock at an exercise price of $.16 per share.
As security for the loan, New Millennium (an affiliate of Mr. Calvert) has pledged 2,500,000 shares of the Company's common stock owned by New Millennium and the Company has granted Augustine a security interest in the Company's ownership interest in its subsidiary, NuWay Sports, LLC. |
