MOUNT VERNON, N.Y.– 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.
