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million recapitalization, the company said late Boulder-based AeroGrow (NASDAQ: AERO) makes the AeroGarden, a line of indoof gardening products. The recapitalization included the conversiohof $1.4 million in accounts payable from a leadinh manufacturer into a two-year debt instrumenrt at 8 percent maturing on June 30, 2011. The company also amended the terms of its senior secured revolvintg credit facility in a way that will allosw it to continue to use debt for workingt capital needs on anongoing “In the past year we’ve been challengec by the downturn in the economy, but have takenh significant measures to reduce our overhead, restructure the balance sheet and continue to drive the companyy toward profitability,” said Jack Walker, AeroGrow’s chairman of the in a statement.
“AeroGrow has a truly differentiated product, with proven demand, and, with the help of this recapitalization, I’nm confident in the capability of the current managemenr team to guide the company through to profitabilityt andcontinued growth. In fact, as a strong indicator of the confidence that we have in the company and our prospectsgoing I, along with our senior management have combined to invest more than $4 million as part of this including $2.8 million in new capital and $1.3 million in convertede obligations.” Separately, AeroGrow announced Tuesday that revenue fell 2.4 percentg in the fiscal year ended March 31, to $37.
4 reflecting a sharp decline in consumefr spending that began in the fourth quarteer of 2008. AeroGrow reported a net loss for the yearof $10. million, or minus 82 cents per share, compare d with a loss of $9.8 million, or minus 84 cents per in theprevious year.
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