Orbit International Closes on New $6,000,000 Credit Facility; Also Completes $4,075,000 Private Placement

Orbit intends to use the equity proceeds for working capital, including litigation-related expenses, and to pay down its new credit line.

Rhea-AI Summary

Orbit International (ORBT) closed a revolving credit facility providing up to $6,000,000 in financing with Merchant Financial Corporation. Availability is subject to the borrowing base, which limits financing against eligible assets. At closing, Orbit drew approximately $4,539,000 to satisfy the balance on its previous credit line with M&T Bank.

Orbit also completed a $4,075,000 private placement led by its largest shareholder, Elkhorn Partners L.P., issuing 1,630,000 common shares at $2.50 per share. The company said the equity proceeds strengthened its balance sheet and, together with additional borrowing availability, enhanced liquidity.

3 points · 2 major

MixediHow this balance works

How this balance works

Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.

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2 major · 4 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Major pointCompleted $4,075,000 private placement provides additional capital, led by largest shareholder Elkhorn Partners L.P. 48% of market cap
• Major pointNew revolving facility with Merchant Financial Corporation provides up to $6,000,000 in financing. 70% of market cap
• Minor point. Forward-looking: it has not happened yet and may not happen.Private-placement proceeds are intended partly to pay down debt under the new revolving credit line.

Negative

• Major pointIssuance of 1,630,000 common shares at $2.50 per share dilutes existing holders.
• Major pointNew credit-line borrowing of approximately $4,539,000 refinanced the balance owed to M&T Bank. 53% of market cap
• Minor pointCredit-facility financing remains subject to borrowing base availability.
• Minor point. Forward-looking: it has not happened yet and may not happen.Private-placement proceeds are intended partly to cover litigation-related expenses.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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HAUPPAUGE, N.Y., Oct. 02, 2026 (GLOBE NEWSWIRE) -- Orbit International Corp. (OTCID Basic Market:ORBT), an electronics manufacturer and software solutions provider, announced today that it has closed on a new revolving line of credit with an asset-based lender. The new line of credit provides for up to $6,000,000 in financing subject to borrowing base availability. At the closing, approximately $4,539,000 was drawn down by the Company under its new line of credit to satisfy the balance owed under its previous line of credit with M&T Bank.

The Company also announced the successful completion of a $4,075,000 private placement led by its largest shareholder, Elkhorn Partners L.P. The private placement included the issuance of 1,630,000 shares of common stock at $2.50 per share. The Company intends to use the additional capital from the private placement for working capital purposes, including litigation-related expenses and to pay down debt under its new revolving line of credit. The Company may also use the proceeds to support growth opportunities it is currently pursuing.

Mitchell Binder, President and CEO of Orbit International Corp. commented, “We are pleased to have closed on a new $6,000,000 line of credit with Merchant Financial Corporation and equally pleased to have completed a private placement valued at $4,075,000. The proceeds from the private placement have significantly strengthened our balance sheet and combined with the additional borrowing availability under our line of credit have substantially enhanced our liquidity.”

Orbit International Corp., through its Electronics Group, is involved in the development and manufacture of custom electronic device and subsystem solutions for military, industrial and commercial applications through its production facilities in Hauppauge, NY and Carson, CA. Orbit’s Power Group, also located in Hauppauge, NY, designs and manufactures a wide array of power products including AC power supplies, frequency converters, inverters, VME/VPX power supplies as well as various COTS power sources.

Certain matters discussed in this news release and oral statements made from time to time by representatives of the Company including, statements regarding our expectations of Orbit’s operating plans, deliveries under contracts and strategies generally; statements regarding our expectations of the performance of our business; expectations regarding costs and revenues, future operating results, additional orders, future business opportunities and continued growth, may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and the Federal securities laws. Although Orbit believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that its expectations will be achieved.

Forward-looking information is subject to certain risks, trends and uncertainties that could cause actual results to differ materially from those projected. Many of these factors are beyond Orbit International's ability to control or predict. Important factors that may cause actual results to differ materially and that could impact Orbit International and the statements contained in this news release can be found in Orbit's reports posted with the OTC Disclosure and News service. For forward-looking statements in this news release, Orbit claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Orbit assumes no obligation to update or supplement any forward-looking statements whether as a result of new information, future events or otherwise.

CONTACT
David Goldman
Chief Financial Officer
631-435-8300

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

How much financing did Orbit International secure through its new credit facility and private placement?

Orbit closed a credit facility providing up to $6,000,000, subject to borrowing base availability, and completed a $4,075,000 private placement. Approximately $4,539,000 was drawn at closing to satisfy the previous credit-line balance with M&T Bank.

How many shares did Orbit International issue in its private placement, and at what price?

Orbit issued 1,630,000 common shares at $2.50 per share in the completed private placement. Its largest shareholder, Elkhorn Partners L.P., led the transaction.

How does Orbit International plan to use its private-placement proceeds?

Orbit intends to use the proceeds for working capital, including litigation-related expenses, and to pay down debt under its new revolving credit line. The company may also use the proceeds to support growth opportunities it is currently pursuing.