Filed pursuant to Rule 424 (b) (3)
Registration Statement No. 333-38718
Supplement, Dated July 3, 2000, to Prospectus, Dated June 7, 2000
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The owner of RELM Wireless Corporation's former paper manufacturing
operations is in default of its principal payment obligation to RELM under its
senior secured promissory note dated May 12, 1997, in the amount of $400,000
which was due on June 16, 2000. RELM has accelerated and demanded immediate
payment in full of the entire outstanding principal balance due under the Note
of $1,600,000.
Under the Note, principal payments of $400,000 each, together with all
accrued and unpaid interest and all other amounts due, were to be paid on June
16, 2000, and June 16, 2001, and an installment payment of $800,000 was to be
due and owing on June 16, 2002.
The Note is secured pursuant to a Security Agreement pursuant to which the
former subsidiary has granted RELM a lien and security interest in certain
collateral. RELM's security interest is subordinated to the security interest
granted to the former subsidiary's senior lender. In addition, a principal of
the former paper operations has guaranteed to RELM the prompt and complete
payment of the Note when due.
Although RELM expects to recover all sums due, whether in the form of cash
or assets, the default will adversely impact RELM's cash flow. RELM expects that
it will be able to fund its working capital requirements from operations and its
revolving line of credit.
