Former Bagel Store Owner Buys Control of Thai Motorcycle Outfit
2 December 1997NABCO, Inc. to Acquire Control of Hai Nan Jia-Thai Motorcycle Co., Ltd., For $20 Million in Stock
NEW YORK, Dec. 2 -- NABCO, Inc. (OTC Bulletin Board: NBCO), announced today that it has agreed to acquire a 55% interest in Hai Nan Jia-Thai Motorcycle Co., Ltd., located in the Peoples' Republic of China for $20 million in NABCO, Inc., common stock. Hai Jia-Thai Motorcycle Co., Ltd., in turn, owns 60% of China Jia Ling Corporation Group and 40% of Thailand Yu Tai Trading Corporation. The Company was established in 1992 as a co-investment corporation and is approved by Hainan Province economic department, Qiong Jing He Zi License No. 492. The Company is located at Dong Xin Industrial Section, Wan Ning City, Hainan Province. The Company reported audited consolidated assets of $23.1 million (U.S. Dollars), and shareholders' equity of $7.7 million at December 31, 1996. The Company reported audited consolidated earnings of $3.8 million and 12-month revenue of $42.1 million for the fiscal year ending December 31, 1996. The Company said it expects revenue and earnings for fiscal year ending December 31, 1997 to be about 10% greater than for 1996. NABCO, Inc. president, A. Jay Boisdrenghien, said, "Under Generally Accepted Accounting Principles (GAAP), our Company will be acquiring about 55% of Hai Nan Jia-Thai Motorcycle Co., Ltd., and we will, therefore. report 55% of their revenue as ours, or about $23.1 million, and earnings of about $2.1 million. We will report additional assets of about $12.9 million, and we'll add about $4.4 million to our shareholders' equity. We plan to exchange about 5,000,000 shares of our authorized, but unissued common stock which will translate into earnings of about 34-cents per share. We would hope that the market will allow us a fair price-to-earnings multiple, as we'd like to apply for a listing on the NASDAQ National Market System (NMS) exchange when, and if, our share price exceeds $5.00 per share. We are quite excited about this tremendous addition to our Company. We think a cash infusion of about $10 million, through private placements and/or a public offering would allow the Chinese motorcycle company to reach annual revenues of more than $100 million and earnings of more than $10 million. We will immediately begin discussions with our investment banking firm and others to seek the expansion capital needed. The motorcycle company currently manufactures small to medium-sized motorcycles for the Chinese market but we think there are additional global opportunities." NABCO, Inc. is a Denver, Colorado based holding company which previously sold its 12 bagel stores, production plant, and franchise stores to Progressive Bagels, now known as Einstein's Bagels, to seek out other business opportunities. The Company's stock is traded in the over-the-counter market under the trading symbol "NBCO." The statements included in this press release contain certain forward-looking statements regarding the Company, its business, prospects and results of operations that are subject to certain risks and uncertainties posed by many factors and events that could cause the Company's actual business, prospects and results of operations to differ materially from those that may be anticipated by such forward-looking statements. Factors that may affect such forward-looking statements include, without limitation: the Company's acquisition of, or failure to acquire, other businesses; the Company's loss of a large customer or key personnel; the Company's ability to successfully develop new products for both new markets and markets currently served by the Company; customer acceptance of new products; the impact of competition, including the ability to generate recurring revenue from certain products; and delays in the Company's introduction of new products from production and transportation difficulties or acts of God. Accordingly, no assurances can be given that events or results mentioned in any such forward-looking statements will in fact occur. SOURCE NABCO, Inc.