Excelsior-Henderson Motorcycle Manufacturing Co Announces Loan
23 December 1998Excelsior-Henderson Motorcycle Manufacturing Company Announces a $5 Million Working Capital Loan Agreement With Dakota Bank
BELLE PLAINE, Minn., Dec. 22 -- Excelsior-Henderson Motorcycle Manufacturing Company today announced that it has entered into a $5 million working capital loan agreement with Dakota Bank, Mendota Heights, Minn. The loan is guaranteed by the United States of America, with an eighty-percent loan guarantee issued by the Rural Business-Cooperative Service. "The proceeds of this working capital loan will be used primarily to fund the Company's working capital needs as we move into production of the Super X motorcycle," said Thomas M. Rootness, Senior Vice President and Chief Financial Officer. "This is an important accomplishment within our financial plan as we move from a development stage company to an operational company," added Rootness. Excelsior-Henderson Motorcycle Manufacturing Company is a pre-revenue company which plans to manufacture, market and sell premium heavyweight American cruisers and touring motorcycles, as well as related parts, apparel and accessories branded with a name that evokes an authentic American motorcycling heritage and lifestyle. The Company will distribute its products through a quality, nationally recognized dealer network. Excelsior-Henderson is one of only two authentic American motorcycle companies exclusively committed to the manufacture of motorcycles. The production-intent 1999 Super X motorcycle was unveiled August 3, 1998, during Sturgis Rally and Races. Motorcycle production is scheduled to begin during late fourth quarter of 1998 or January 1999. Notes Concerning Forward Looking Statements: This press release contains forward-looking statements regarding the plan of the Company to produce and sell 1999 Super X motorcycles during the fourth quarter of 1998 or January 1999 that involve risks and uncertainties. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of the factors set forth below and the factors described from time to time in the Company's reports on file with the Securities and Exchange Commission, including but not limited to the Company's Annual Report on Form 10-K for the fiscal year ended January 3, 1998 and the Company's Quarterly Reports on Form 10-Q for the quarters ended April 4, July 4, and October 3, 1998. Factors that may affect the timing of production of the Super X include problems in acquisition, installation and successful operation of the motorcycle production equipment, the ability of the Company to locate competent suppliers or obtain adequate quantities of components and supplies at reasonable costs, the ability of the Company to obtain working capital financing as needed, the ability of the Company to hire additional qualified personnel and the ability of the Company's engineering and manufacturing staff to design, engineer and produce the Super X. In addition, for the Company to be successful, its products must be manufactured to meet high quality standards in production volumes. The transition from prototype to mass production will involve various risks and uncertainties that may not be apparent at this time and there can be no assurance that the Company will be able to successfully react to unanticipated difficulties and commence mass production as anticipated. In addition, the Company will be required to obtain certain government approvals and certifications prior to sales of the Super X. Potential delays and costs that could result from obtaining such approvals could result in a delay in motorcycle production.