MamaMancini's Secures Loan Under Paycheck Protection Program Provision of CARES Act
EAST RUTHERFORD, NJ, April 22, 2020 (GLOBE NEWSWIRE) -- MamaMancini's Holdings, Inc. (OTCQB: MMMB), a marketer of specialty pre-prepared, frozen and refrigerated food products, has secured a $330,000 loan under the Paycheck Protection Program (PPP) (the “Loan”) contained within the Coronavirus Aid, Relief and Economic Security (CARES) Act that was signed into law on March 27, 2020.
As a U.S. small business, MamaMancini’s has qualified for the PPP, which allows businesses and nonprofits with fewer than 500 employees to obtain loans of up to $10 million to incent companies to maintain their workers as they manage the business disruptions caused by the COVID-19 pandemic.
The Loan, evidenced by a promissory note to M&T Bank as lender, has a term of two years, is unsecured, and is guaranteed by the Small Business Administration (SBA). The loan bears interest at a fixed rate of one percent per annum, with the first six months of interest and principal deferred. Some or all of the Loan may be forgiven if at least 75 percent of the Loan proceeds are used by MamaMancini’s to cover payroll costs, including benefits and if the Company maintains its employment and compensation within certain parameters during the eight-week period following the loan origination date and complies with other relevant conditions. As written in the CARES Act, MamaMancini’s expects to utilize these funds to cover payroll costs to allow for continuous, high-quality operations.
“I am pleased to have secured a loan under the Paycheck Protection Program, strengthening our balance sheet with $330,000 of potentially forgivable loan proceeds during these uncertain economic times,” said Carl Wolf, Chairman and Chief Executive Officer of MamaMancini’s. “Operationally, our business has seen healthy demand growth amidst this pandemic, driven by consumers sheltering in place and making a majority of their food purchases from grocery stores.
“As we are deemed as essential business, our manufacturing facilities have continued to operate and produce products for our customers, though this is naturally a fluid situation and subject to change. I’d like to thank our employees for their hard work during these trying times, they are the ones who make our incredible growth possible and their wellbeing is our top priority. We appreciate the support of our investors and look forward to providing further operational updates as appropriate,” concluded Wolf.
About MamaMancini’s Holdings, Inc.
MamaMancini's Holdings, Inc. (OTCQB: MMMB) is a marketer and distributor of specialty prepared, refrigerated and frozen all-natural Italian foods. MamaMancini’s product portfolio consists of over 20 products including meatballs, meat loaf, chicken parmesan, sausages and dinner kits, with beef, turkey, chicken and pork varieties. The Company’s products are sold in over 45,000 locations nationwide, including at well-known retailers such as Walmart, Kroger, Publix, Costco and Albertsons, as well as through national distributors such as Sysco and United Natural Foods. The Company has a major presence on QVC, the largest direct to consumer marketer in the world. For more information, please visit .
Forward-Looking Statements for MamaMancini’s
This press release may contain "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. "Forward-looking statements" describe future expectations, plans, results, or strategies and are generally preceded by words such as "may," "future," "plan" or "planned," "will" or "should," "expected," "anticipates," "draft," "eventually" or "projected." You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in the Company's 10-K for the fiscal year ended January 31, 2019 and other filings made by the Company with the Securities and Exchange Commission.
Investor Relations for MamaMancini’s:
Greg Falesnik
Managing Director
MZ Group - MZ North America
(949) 385-6449
