CARHF Lands $4M Underwriting
13 July 1999
CARHF Lands $4M Underwriting
EL CAJON, CALIFORNIA--July 13, 1999--Composite Automobile Research, Ltd. (OTC BB: CARHF) has entered into an underwriting agreement with First Liberty Securities, Ltd. to raise $4 million in guaranteed bond offering.The underwriting effort will fund an aggressive strategic marketing push to place WorldStar Master Licenses, micro-manufacturing facilities, and factories-to-build-factories in emerging nations throughout the world.
Thomas Bowers, CARHF president, describes the underwriting's role in the company's strategic plan. "This funding effort is the next major step to fully exploiting the huge, demonstrable demand for durable, reliable transportation in emerging nations. We have enjoyed tremendous response in South America and the Pacific Rim. This capital infusion will allow us to increase brand awareness and further penetrate target markets in Eastern Europe, Africa, and the Middle East."
World Transport Authority (WTA), a wholly-owned subsidiary of Composite Automobile Research, Ltd., has sold seven master licenses, worth in excess of $2M each, with entrepreneurial franchisees in Mexico, the Caribbean, Columbia, Ecuador, Venezuela, Panama, and The Philippines.
Each Master License, and subsequent micro-manufacturing facility represents a continuing revenue stream for WTA. Under the terms of the Master License agreements, WTA retains a 20% interest in each factory that manufactures factories to build the WorldStar cars, and a 6% interest in each auto manufacturing facility. WTA is the sole supplier of raw material and proprietary auto components and parts to each manufacturing facility. The annual recurring revenue from the ownership interest and parts sales for each one-car-per day factory is $194,000US.
WTA is the designer and manufacturer of the WordStar Vehicle. The vehicle, in four configurations, represents four years and $3.44-million of investment in research and development to produce a highly resilient composite automobile that can be easily manufactured using locally available labor in emerging-world nations. The vehicles are produced under distributed manufacturing licensing agreements with local entrepreneurs in the nations in which the vehicles are sold.
Standardization and quality control are built-in to the "cookie-cutter" facilities delivered to site locations "ready-to-install," under the supervision of WTA engineers who train key personnel in all facets of manufacturing of the unique automobiles. The Company provides ongoing training and management information support to the local factories, and controls all inventory delivery of raw materials and component parts.
The Company is strategically positioned to satisfy the rapidly emerging requirement for reliable transportation in geographic regions ignored by major auto manufactures such as Ford , Chrysler , and General Motors
WTA has completed its research and development cycle and is operationally profitable entering its production and marketing stage. The Company has no debt.
The MacArthur Foundation of Zurich has selected Composite Automobile Research, Ltd and World Transport Authority for an in-depth "Special Situation" report, which can be viewed at www.macarthurfoundation.com. Additionally, CARHF and WTA are profiled on the premier investor information site, Market Infocom at www.market-infocom.com.
This press release contains forward-looking statements within the definition of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements are based on the beliefs of the Company's management as well as on assumptions made by and information currently available to the Company at the time such statements were made. Actual results could differ materially from those included in such forward-looking statements.