PRINCETON N.J., July 13, 2016 (GLOBE NEWSWIRE) -- Mikros Systems Corporation (OTCQB:MKRS) announced today that it has completed a recapitalization transaction to eliminate all issued and outstanding shares of preferred stock.

The Company previously had four classes of preferred stock, which were exchanged or redeemed for a combination of common stock and cash payments as follows:

• Convertible Preferred Stock – $0.165 plus 1.95 shares of common stock per share
• Series B Preferred Stock – $0.0825 plus 2.43 shares of common stock per share
• Series C Preferred Stock – $2.708 plus 31.27 shares of common stock per share
• Series D Preferred Stock – $0.3623 cash plus 5.07 shares of common stock per share

In connection with the preferred stock exchange, Mikros also repurchased 2,084,167 issued and outstanding shares of common Stock owned by the United States Small Business Association. As a result of these transactions, the Company will make aggregate cash payments of $544,017, issue 3,089,806 additional shares of common stock, and eliminate $2,955,433 of aggregate liquidation preferences applicable to its previously outstanding shares of preferred stock. Complete details of the transactions are set forth in the Company’s Current Report on SEC Form 8-K filed with the Securities and Exchange Commission on June 17, 2016.

“These transactions have greatly simplified our capital structure and removed almost $3,000,000 of accrued dividends and liquidation preferences required to be paid prior to any distribution to holders of our common stock. We believe that the recapitalization, combined with our recent strategic corporate moves to diversify the markets and customers we serve, will accelerate the growth of our company and create long term value for our common shareholders,” said Tom Schaffnit, Mikros Director and Chairman of the Corporate Administration Committee of the Board of Directors, which negotiated the transactions.

About Mikros

Mikros Systems Corporation is an advanced technology company specializing in the research and development of electronic systems technology for military, industrial and commercial applications. Classified by the U.S. Department of Defense as a small business, its capabilities include technology management, electronic systems engineering and integration, radar systems engineering, command, control, communications, computers and intelligence systems engineering, and communications engineering. Mikros’ primary business is to pursue and obtain contracts from government and commercial customers. For more information on Mikros, please visit: www.mikrossystems.com.