MotorSports Emporium Announces Stock Dividend
SCOTTSDALE, Ariz.--MotorSports Emporium, Inc. (OTCBB: MSEP) today announced the planned spin-off of its subsidiary Scottsdale Diecast, Inc.
The Board of Directors for MSEP has approved and set a record date of November 6, 2006, for the proposed dividend and spin-off of its subsidiary Scottsdale Diecast, Inc. The Board declared a dividend of one share of common stock of Scottsdale Diecast for each share of MotorSports Emporium common stock held by shareholders on November 6, 2006. Approximately 12% of Scottsdale Diecast, Inc. shares will be distributed in the dividend.
David Keaveney, president and chief executive officer, stated, “I am very pleased to announce the first step in the proposed spin-off of Scottsdale Diecast, which will allow Scottsdale Diecast to become a separate operating company from MotorSports Emporium. The dividend and proposed spin-off are important achievements for both MSEP and Scottsdale Diecast. The spin-off of Scottsdale Diecast allows independence for both companies to pursue their respective growth strategies and focus on their own distinctive markets. We are extremely excited about the prospects for both companies moving forward.”
MotorSports Emporium has approximately 480 million shares of common stock issued and outstanding. After giving effect to the previously announced 1:225 share reverse stock split, which will take effect on October 31, 2006, MotorSports Emporium will have approximately 2,150,000 shares outstanding. Therefore, shareholders of record on November 6, 2006, will receive one share of Scottsdale Diecast for each share of MotorSports common stock held on such date. MotorSports Emporium will issue approximately 2,150,000 shares (or approximately 12%) of Scottsdale Diecast shares in the dividend which is expected to be distributed in January 2007.
In Other News
MSEP has updated its investor relations page on the company’s Web site in order to promote a fluent source of information about the company and its stock. Questions can be directed to ir@motorsportsemporium.com.
About MotorSports Emporium, Inc.
MotorSports Emporium Inc. is a fast-track, multi-faceted and diversified company in the motor sports industry targeting INDY, NASCAR, Formula 1 and other racing series, spectators, classic car and high-performance auto enthusiasts, professional and amateur mechanics and discriminating consumers in search of high-quality auto parts and accessories. MotorSports Emporium’s marketing plan is to reach consumers through mass market retailers, auto parts suppliers, and home television shopping networks, infomercials, industry and consumer trade shows, and consumer direct advertising (television, magazine and Internet). Visit www.motorsportsemporium.com for more information.
About Scottsdale Diecast, Inc.
Scottsdale Diecast (doing business as ScaleCars.com) owns and operates a diecast model retail store in Scottsdale, Ariz., and the Internet Web site www.scalecars.com where a variety of diecast models are sold. ScaleCars.com specializes in many scales (size) from most every manufacture. Vintage Formula 1 , American muscle and the latest super car are all found at ScaleCars.com. Visit www.scalecars.com for more information.
This news release may include forward-looking statements within the meaning of section 27A of the United States Securities Act of 1933, as amended, and section 21E of the United States Securities and Exchange Act of 1934, as amended, with respect to achieving corporate objectives, developing additional project interests, the company's analysis of opportunities in the acquisition and development of various project interests and certain other matters. These statements are made under the "Safe Harbor" provisions of the United States Private Securities Litigation Reform Act of 1995 and involve risks and uncertainties which could cause actual results to differ materially from those in the forward-looking statements contained herein.