Brookstone provides $2.74 mln to MTI

Brookstone Partners has invested $2.74 million in Mechnical Technology Inc. Based in Albany, New York, MTI is a maker and seller of precision test and measurement sensors, instruments and systems.

PRESS RELEASE

ALBANY, N.Y.–(BUSINESS WIRE)–Mechanical Technology, Incorporated (MTI or the Company), (OTCQB: MKTY), a company engaged, through its subsidiary MTI Instruments, Inc., in the design, manufacture and sale of precision test and measurement sensors, instruments and systems that provide solutions for linear displacement, vibration measurement and system balancing and tensile measurements in markets that require the exacting measurement and control of products and processes for automated manufacturing, assembly and consistent operation of complex machinery, announces the investment of $2.74 million for future growth initiatives.

Brookstone Partners (www.brookstonepartners.com), a private equity firm in New York City, has, through Brookstone Partners Acquisition XXIV, LLC (Brookstone), acquired 3.75 million newly issued shares of common stock of MTI for $2.74 million. Following this investment, MTI intends to continue to focus on the current growth strategy in the analytical measurement market with sensors, instruments and systems.

This new investment has allowed MTI’s balance sheet to improve and provides MTI with additional capital for, among other things, key strategic activities. We believe that, in turn, this will facilitate an accelerated use of the approximate $51.0 million in unused Federal net operating loss carryforwards (NOLs) incurred by MTI during the microfuel cell development period to offset future taxable income.

Concurrent with the investment, the membership of the Board of the Company has changed. In accordance with the terms of the Stock Purchase Agreement between MTI and Brookstone pursuant to which MTI sold the shares of common stock to Brookstone, Dr. Walter L. Robb and Mr. Dennis O’Connor have resigned from the Board, and the Board appointed Mr. Matthew Lipman and Mr. Michael Toporek of Brookstone and Mr. Ted Hirshfield of Steppingstone Group as new members of the Board.

“We are extremely excited about the future of MTI with the addition of new capital and our association with Brookstone,” stated Kevin G. Lynch, CEO of MTI. “Now that we have stabilized the base business, after a difficult year in 2015, the additional capital will enable us to look to expand our growth strategy beyond our current organic growth model. With Brookstone at our side, we expect to generate and execute on new strategic activities including potential acquisitions. This will also strengthen our ability to deliver on our stated goal in achieving shareholder value in conjunction with our recently announced Shareholders’ Rights Plan to protect and ultimately utilize the approximate $51.0 million in NOLs that were generated in the past.”

“On behalf of all shareholders and members of the Board, we want to thank both Dr. Robb and Mr. O’Connor for their dedicated service to the Board and for their guidance and unwavering commitment to MTI for more than 20 years.”

About MTI
MTI is engaged in the design, manufacture, and sale of test and measurement instruments and systems through its subsidiary MTI Instruments, Inc. MTI Instrument’s products use a comprehensive array of technologies to solve complex, real world applications in numerous industries including manufacturing, electronics, semiconductor, solar, commercial and military aviation, automotive and data storage. For more information about the Company, please visit www.mechtech.com.