Newer Technology and Singapore-based manufacturer, Tri-M entered a partnership agreement on Tuesday.
This is the successful completion of a months negotiation (for more background see "Newer facing bankruptcy").
Tri-M has been building Newer Technology products for six months, and decided to invest to help Newer climb out of a financial hole. This is the second round of finance from Tri-M for Newer, and the company and its creditors have had to agree to strict requirements to get it.
As part of the deal Newer's creditors had to sign a forbearance letter, giving Newer 12 months grace to pay back outstanding debts. The company also had to agree that none of Tri-M's investment cash be spent on repaying outstanding debts, and accept Tri-M personnel onto its management team.
With immediate effect, several Tri-M operatives took seats on Newer's board of directors. They are Gerald Minjoot, Hamid Jinnah, Kenneth Chu and Robert Bradley.
Gerald Minjoot, managing director Tri-M said: "Tri-M is delighted to combine its manufacturing capacity with Newer's product development."
Newer Technology says that the addition of key management personnel will speed the process of getting new products to market. The investment of cash also means more resources and staff for the recently launched Newer Store, where Newer is offering many of its products for direct sale online. Orders are already coming to the company through the site, which attracted more than 10,000 hits in its first 24 hours online.
Newer President and chief operating officer John Nelson announced that the Newer Store is central to the company's future. Also crucial to the company is the fate of the iMAXpowr G3 466, which is described as a 'key product'.