FOR IMMEDIATE RELEASE
Contact: Quality Stocks
Westerville OH, March 12, 2013
WESTERVILLE, March 12 , 2013 - The Guitammer Company (OTCQB: GTMM) (the “Company”), a leader in low frequency sound and creator of the award-winning line of ButtKicker®-brand low frequency audio transducers that provide an immersive entertainment experience, announced today that The Director of the Ohio Development Services Agency and the Company have entered into an agreement to modify Guitammer’s loan payment schedule.
Originally scheduled to be due in full by July of 2014, the loan was modified to have a longer amortization timeframe. The net effect of modification is to reduce Guitammer’s monthly payment by approximately $16.5k per month for 2013 and by $14.6k per month for 2014 from the previous schedule.
This equates to an annual cash flow enhancement of approx $200k this year and $175k in 2014. The new loan has a $225k balloon payment of principal due in November of 2015.
Guitammer’s Chief Financial Officer, Richard Conn, stated, “This modification combined with the significant improvements the company made to its balance sheet last year, including reduced debt, decreased interest rates, reduction in working capital deficits and increased levels of inventory, are helping to bring the company closer to positive cash flow on its core business. In addition to giving us more operational leeway, the increased cash flow will provide more support as we continue to advance the commercialization of our ButtKicker Live! broadcast technology.”
About The Guitammer Company
The Guitammer Company, Westerville, OH, is a leader in low frequency sound. Its innovative and award-winning line of ButtKicker®-brand low frequency audio transducers let users feel low-frequency sound (bass) and are used around the world by leading entertainment and theater companies such as Alamo Drafthouse, IMAX, Disney and Lumiere Pavilions in movie theaters and attractions; by world famous musicians; in home theaters, simulators and for car audio. Their revolutionary, patented design makes them musically accurate, powerful and virtually indestructible. ButtKicker® and ButtKicker Live!® are registered trademarks of The Guitammer Company.
This press release contains forward-looking statements that involve risks and uncertainties. Actual results, events and performances could vary materially from those contemplated by these forward-looking statements. These statements involve known and unknown risks and uncertainties, which may cause the Company's actual results, expressed or implied, to differ materially from expected results. These risks and uncertainties include, among other things, product demand and market competition. You should independently investigate and fully understand all risks before making an investment decision