Norton Motorcycles Goes Public on Nasdaq Stock Exchange
21 April 1999
Norton Motorcycles Goes Public on Nasdaq Stock Exchange; Nasdaq Listing/Management Changes/Motorcycle Testing/Apparel License
MINNEAPOLIS, April 20 -- Hallmark Properties, Inc.
(OTC Bulletin Board: HMKP) has acquired the assets of Norton Motors
International (NMI) in a strategic acquisition made 16 April.
A 1-for-42 reverse stock split will occur soon. After the split, Norton
Motors International will own 6 million shares in Hallmark out of 6,999,612
common shares outstanding. Hallmark is changing its name to Norton Motorcycles
Inc. ("Norton") and its ticker symbol to NMOT. The acquisition includes all
Norton trademarks, its Shenstone, England, assembly plant and all motorcycle
and engine designs and prototypes. Based on successful tests to date of the
NEMESIS and MANX models, Norton expects to complete its initial motorcycle
development program later this year. Genesis Capital Group of Minneapolis has
agreed to invest an initial $1 million in Norton.
MANAGEMENT
Mark Osterberg will serve as Norton's Chief Executive Officer/Chief
Financial Officer. From 1990-1998, Osterberg served as Vice President-Finance
and Chief Accounting Officer of Northwest Airlines. He brings more than
25 years of finance and management experience to Norton.
Myron Calof, formerly Chief Executive Officer of NMI, will serve as Senior
Vice President. Calof served as Chief Executive Officer of NMI following its
acquisition in March 1998 of the assets of Norton Motorcycles Limited of the
United Kingdom. He has previously been a senior officer of two major Canadian
development/investment organizations and practiced law. Calof brings to
Norton almost 27 years of experience in legal affairs, finance, business and
corporate management.
John Fiebelkorn will be Norton's Managing Director of Sales, after
20 years at Polaris Industries, where he most recently served as Vice
President/International Sales.
The Board of Directors will be comprised of John Tastad of Minneapolis and
Roberto Aquilini of Vancouver, British Columbia, in addition to Calof and
Osterberg.
SUCCESSFUL TEST RESULTS
Norton has now road-tested two of its initial models, which were designed
by Melling Consultancy Design (MCD) of Rochdale, England. The NEMESIS and MANX
are powered by 1500 cc V-8 and 750 cc in-line-four engines respectively, which
were designed for Norton by MCD. These engines have been in testing since last
year. Motor Cycle News has said that "the sight and sound of the 16-valve
(MANX) machine firing into life marks another milestone in Norton's comeback
story" and described the NEMESIS as the "Hit of the Show," referring to last
November's Birmingham Motorcycle Show. The first NEMESIS in North America is
now on public display at Leo's South in Lakeville, Minn.
APPAREL LICENSE
Newly designed Norton apparel and personal accessories will be available
on the company's website on 1 May. Norton has signed an extensive license
agreement with Canadian-based Wilson International of Vancouver. Wilson has
more than 25 years of licensing experience in association with numerous
organizations such as Molson Indy Racing and the British Commonwealth Games.
The new Norton merchandise will first be available from the company's website
and will be distributed to retailers in the UK, USA and elsewhere later this
year. Norton's internet website ( http://www.nortonmotorcycles.com ) is being
upgraded and will relaunch 1 May.
BACKGROUND
Headquartered in Plymouth, Minn., with production facilities in England,
Norton Motorcycles will market a line of motorcycles and motorcycle products
throughout the world. Norton is presently engaged in the design and
development and of a line of high-performance, premium motorcycles and the
marketing of motorcycle products. All of the products will be sold under the
famous "Norton" brand name, which will provide its motorcycles with worldwide
appeal and brand recognition among motorcycle enthusiasts. In addition to the
NEMESIS and MANX, Norton is developing a V-Twin model.