Norton Motorcycles Announces Withdrawal of Funding Commitments
28 October 1999
Norton Motorcycles Announces Withdrawal of Funding Commitments
MINNEAPOLIS, Oct. 27 -- Norton Motorcycles, Inc. ("Norton" or
the "Company") (OTC Bulletin Board: NRTN) announced that certain funding
commitments had been withdrawn.
In June 1999, NMI Investments, LLP ("NMI") agreed to provide a $1,000,000
bridge loan facility to the Company and to acquire $4,000,000 of a previously
contemplated preferred stock offering. As of October 26, 1999 NMI had
advanced approximately $700,000 under such bridge loan facility. In response
to the Company's assessment, which is discussed in a separate concurrent press
release, that it may not complete the development of its previously announced
product line, NMI has informed the Company that a substantial change in the
business and the operations of the Company has occurred, and that therefore,
it is withholding any additional funding under the bridge loan and it has
withdrawn its previously contemplated $4,000,000 funding commitment. NMI has
informed the Company and its Board of Directors that it will discuss the
possibility of providing interim financing and other subsequent financing
efforts on behalf of the Company.
As of October 26, 1999, the Company had only approximately $100,000 in
remaining cash available. The Company is currently engaged in discussions
with NMI, its Board of Directors and other stakeholders in an effort to obtain
short-term financing to fund the Company's operations until longer-term
financing is secured. The Company requires additional cash resources in the
immediate future to continue as a going concern and to continue its efforts to
introduce a premium line of high performance motorcycles into the marketplace.
There can be no assurance that any such additional financing can or will be
obtained on terms and conditions favorable, or acceptable, to the Company, or
at all. In the event the Company is unable to secure additional immediate
short-term capital, there is substantial doubt about the Company's ability to
continue as a going concern.
Headquartered in Eden Prairie, Minn., Norton Motorcycles is a
development-stage enterprise. Norton has been engaged in the design and
development of a line of high-performance, premium motorcycles and the
marketing of motorcycle products. All of the products are intended to be sold
under the famous "Norton" brand name, which will provide its motorcycles with
worldwide appeal and brand recognition among motorcycle enthusiasts.
Statements used in this Press Release that relate to future plans, events,
financial results or performance are all forward-looking statements as defined
under the Private Securities Litigation Reform Act of 1995. Actual results
may differ materially from those anticipated as a result of various risks and
uncertainties, including, but not limited to: the Company's ability to raise
short-term and long-term capital; the Company's ability to create product and
brand name awareness; the level of consumer acceptance of the Company's
products; the Company's ability to design, develop and market its products on
a cost-effective basis; economic trends; industry competition; the outcome of
existing litigation with the Company's former engineering firm; as well as
various other risks and uncertainties, including all risks associated with the
Company being a development-stage company with limited assets and no existing
revenues. The Company has no obligation to publicly update or revise any of
the forward-looking statements that may be in this release.