Laforza Automobiles, Inc. Finalizes Purchase of New Production, Administrative and Distribution Facility
9 February 1998
Laforza Automobiles, Inc. Finalizes Purchase of New Production, Administrative and Distribution FacilityCompany Announces That Sales of New 1998 Model are on Schedule SAN DIEGO, Feb. 9 -- Laforza Automobiles, Inc. (OTC Bulletin Board: LFZA) announced today that they have closed escrow on their new, sixty-five thousand (65,000) square foot production, distribution, and administration facility located in Escondido, California. The purchase price of the building was $3,200,000, including $500,000 cash, $550,000 in Laforza Automobiles, Inc. restricted common stock, and a long-term note for $2,150,000. The purchase adds $3,200,000 to the company's balance sheet with approximately $1,050,000 in additional shareholders equity. In a related transaction, the Company has leased over 40,000 square feet of the building to long-term tenants. The rent generated from these leases will cover approximately 75% of the facilities monthly operating cost. The Company also announced that sales of the new 1998 model Laforza (Prima 4X4) are moving briskly, and are on-track to meet or exceed 1998 projections. To date, the Company has signed two (2) dealership agreements. These dealers, located in Longwood (Orlando), Florida and San Francisco, California, are under contract to purchase at least twenty-four (24) vehicles each in calendar year 1998. In December 1997, the Company recorded its top sales month ever when it pre-sold (8) 1998 vehicles. In addition, the Company also sold all three (3) '98 "show" models that recently debuted at the Los Angeles Auto Show. The base retail price of the '98 model is $59,500. Finally, the Company announced that they are currently in negotiations to sign another two (2) Exclusive Dealers' Agreements. One dealer under consideration is in the Northeast, the other in the upper Northwest. It is anticipated that these agreements will be in place over the next sixty (60) days. Laforza Automobiles, Inc. is a publicly traded company (stock symbol "LFZA") that has the exclusive North American import, distribution and marketing rights to the Italian-made Laforza (Prima 4X4) Sport Utility Vehicle. To find out more about this exciting growth company, please visit their web site at http://www.laforza.com. SOURCE Laforza Automobiles, Inc.