Cannondale Resumes Motorcycle Production
21 December 2000Cannondale Reduces Debt, Eliminates Warrants, And Resumes Motorcycle Production
BETHEL, Conn., Dec. 19 Cannondale Corporation has paid down approximately $12,000,000 in long-term debt, and resumed production of its MX400 motorcycle. The pay-down also terminates the warrant granted in June 2000 to Ableco Finance LLC, one of the Company's lenders. The warrant would have allowed Ableco to purchase 393,916 shares of the Company's common stock beginning June 30, 2001 at $0.01 per share under certain circumstances. The pay-down follows Cannondale Founder and President Joe Montgomery's full repayment of notes totaling $12,000,000 and all related accrued interest to the Company. Cannondale also announced today that it has resumed production of its MX400 motocross motorcycle. Production had been halted in October while the Company completed testing of improved components. "Our core bicycle business continues to be strong, and now we're excited to have the motorsports division back on-line," said Montgomery. "With the MX400 on its way to dealers and customers, and with the FX400 waiting in the wings, we're looking forward to an exciting 2001." The FX400 is Cannondale's much-anticipated four-wheeled ATV (All-Terrain Vehicle). The FX400 uses the same basic engine platform developed for the MX400. The Company is testing FX400 prototypes every day in a variety of conditions, as documented on Cannondale's web site at http://www.cannondalemotorcycle.com/gallery/. Shipments of production units are expected to begin in the first quarter of calendar 2001. Cannondale Corporation is the world's leading manufacturer of high-performance bicycles. The Company's bicycles and bicycle accessories, which include clothing, packs and bags, HeadShok suspension forks and CODA components, are marketed under the Cannondale brand name and "Handmade in USA" logo, and are sold in the U.S. and in more than 60 foreign countries. The Company has also entered the motorsports industry with its MX400 motocross motorcycle. In addition to the FX400 ATV, the Company has also announced plans to develop two additional motorcycle models. This press release contains certain forward-looking statements, as defined under the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those anticipated as a result of various risks and uncertainties, including risks and uncertainties described in this press release, as well as those detailed from time to time in the Company's periodic reports on Forms 10-K, 10-Q and 8-K filed with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements which speak only as of the date hereof. The Company undertakes no obligation to publish revised forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.