[January 04, 2005] The Singing Machine Company Announces Conversion of Debt to Equity By Certain Insiders Tweet COCONUT CREEK, Fla. --(Business Wire)-- Jan. 4, 2005 -- The Singing Machine Company (AMEX: SMD) announced today that Chairman Joseph Bauer, Interim CEO Y.P. Chan, and one other corporate insider have converted a total of $400,000 of loans they made to the Company into common stock at an effective conversion price of $0.72 per share. This transaction was ratified by the Company's Audit Committee. The three individuals and a former Director loaned the Company a total of $1 million in July 2003. "Our decision to convert a portion of our loans into equity at the current market price demonstrates our confidence in the future of The Singing Machine," Chan said. "This conversion will strengthen the Company's balance sheet as we work hard to ensure that The Singing Machine continues to have the financing required to implement our business plan." About The Singing Machine Incorporated in 1982, The Singing Machine Company develops and distributes a full line of consumer-oriented karaoke machines and music under The Singing Machine(TM), Motown(TM) and other brand names. The first to provide karaoke systems for home entertainment in the United States, Singing Machine sells its products in North America, Europe and Asia. Forward-Looking Statements This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on current expectations, estimates and projections about the Company's business based, in part, on assumptions made by management and include, but are not limited to statements about our financial statements for the fiscal year ended March 31, 2004. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements due to numerous factors, including the risks that our vendors in China may not ship our products on the scheduled basis and that we will have sufficient cash flow to finance our working capital needs in the second and third quarter of this fiscal year. In addition, you should review our risk factors in our SEC filings which are incorporated herein by reference. Such forward-looking statements speak only as of the date on which they are made and the company does not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of this release. [ Back To TMCnet.com's Homepage ]