Packaging Research Corporation announces completion of $3.2 million convertible debenture

Business Wire, Dec 21, 1995

DENVER--(BUSINESS WIRE)--Dec. 21, 1995--Packaging Research Corporation (PRC) (NASDAQ:PRCA) today announced it has completed a $3.2 million convertible debenture.

The placement was with a fund managed by Renaissance Capital Group, Inc. of Dallas, Texas. Renaissance has acted as investment advisor for a number of successful funds since 1973.

The seven-year debenture carries an interest rate of 9% per annum for the first three years, amortizing at 1% per month thereafter with a balloon payment on the balance at the end of the full term. The debenture is convertible into common stock at any time at a price of $1.50 per share. Proceeds will be used to fund the Company's aggressive growth plans and to retire debt.

The funding adds to the $2 million credit facility the Company has with Norwest Business Credit, Inc.

"This funding provides PRC and its wholly owned subsidiary, Mama Rizzo's, Inc. with the working capital necessary to expand operations and to better position the Company to achieve its objectives in the areas of profitability and enhancing shareholder value," said Robert Fillingham, PRC president.

PRC is a diversified food company that processes and distributes premium Mama Rizzo's pasta sauce and manufactures precision, high-speed food processing equipment. The Company expects to report sales in the $22 million range for the year ending December 31, 1995, versus sales of $6 million in 1994. This increase is attributable to both the acquisition of Mama Rizzo's, Inc., whose sales increased by approximately 15% during 1995, and to record sales by PRC's core food processing equipment business.

CONTACT: Packaging Research Corporation, Denver

Robert A. Fillingham, 303/936-2363

or

Pfeiffer Public Relations, Inc., Denver

Geoff High, 303/393-7044