NABCO, Inc. Pays $20 Million In Stock For Control of Chinese Motorcycle Company
2 March 1998
NABCO, Inc. Pays $20 Million In Stock For Control of Chinese Motorcycle Company;
Plans Corporate Name Change
LITTLETON, Colo. March 2, -- NABCO, Inc.
(OTC Bulletin Board: NBCO) announced today that it has acquired fifty-five
percent (55%) of the Hai Nan Jia-Thai Motorcycle Co., Ltd., located in the
Peoples' Republic of China for 5,000,000 shares of its common stock valued at
$4.00 per share or $20 million as first announced on December 3, 1997.
Jay Boisdrenghien, NABCO's president and chief executive officer, said,
"We have been informed that The Hai Nan Jia-Thai Motorcycle Co. posted revenue
of $41 million, with after-tax earnings of $3.8 million for the fiscal year
ending December 31, 1997. Also, we were told that they had total assets of
$22.1 million, and shareholders' equity of $8.3 million at December 31, 1997.
Assuming this to be true, under Generally Accepted Accounting Procedures
(GAAP), our company would report fifty-five percent (55%) of Hai Nan's revenue
or $22.5 million, earnings of $2.1 million or 34-cents per share and total
assets of $12.1 million, and shareholders' equity of $4.5 million or 74-cents
per share at December 31, 1997.
"I will be going to China in a few days for a closing ceremony and
celebration with the management and staff of Hai Nan. We will plan when to
begin importing Hai Nan's motorcycles into the U.S. Hai Nan Jia-Thai
Motorcycle Co., is a first class manufacturing company which also
private-labels motorcycles for the Honda Motorcycle Company of Japan. We will
also look toward exporting motorcycles to other parts of the world in the
future.
"We are quite pleased and honored to make this business acquisition for
the benefit of our shareholders. We will soon be asking our shareholders to
approve a corporate name change to "American Motorcycle Company" or a similar
name to better reflect our new operations and future business plans. We will
be changing our trading symbol as well and, when the necessary audits are
completed, we will become a fully reporting company with the Securities and
Exchange Commission and then apply for our stock to trade on the Nasdaq
SmallCap trading system, thus affording our shareholders a more visable and
liquid trading market.
"In addition, our company will seek additional acquisitions related to
motorcycle manufacturing and/or motorcycle sales and distribution. We feel
there is an opportunity to consolidate multiple brand motorcycle dealerships
in the same geographic area into one "super store" for sales and service, thus
realizing economies of scale and, hopefully, significant profit."
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.
NABCO, Inc., is a Littleton, 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 Company plans to change its corporate
name to "American Motorcycle Company" and to change its trading symbol during
the next few weeks.
To receive a complete due diligence package on NABCO and the Hai Nan
Jia-Thai Motorcycle Co., please call Fifth Avenue Communications at
800-992-6616 or, see information posted on Fifth Avenue Communication's web
site: http://www.o-c-s.com/fifth
SOURCE NABCO, Inc.