Colonel's International Inc. Announces a Special Shareholder Dividend
29 February 2000
Colonel's International Inc. Announces a Special Shareholder Dividend
TECUMSEH, Michigan--Feb. 29, 2000--The Colonel's International Inc., has announced that it will be seeking formal shareholder approval at its annual general meeting to be held on May 10th 2000, to declare a special stock dividend to shareholders; outlining a plan designed to enhance shareholder value and focus on the core manufacturing business, as well as investments in the recently announced E-PAWN INC., (http://www.e-pawn.com) e-commerce, software development and online auction ventures.The Colonel's will seek approval from shareholders to spin off the Brainerd International Raceway, and certain real estate earmarked for development as a sports and entertainment complex.
A newly formed company named Sports Resort International Inc. will serve as the corporate entity for the venture. Colonel's International shareholders of record as of May 10th 2000 will receive one free (1) share of Sport Resorts International Inc., for every share they hold in the parent company, as a special stock dividend.
Sports Resorts International Inc. will own and operate the Brainerd International Raceway in Brainerd, Minnesota, currently owned and operated by Colonel's International. Additionally, Sports Resorts International will pursue the development of a planned sports and entertainment complex.
Williamson and his wife Patsy control the majority of the company's common stock and have agreed to vote in favor of the stock dividend and spin-off. Williamson commented, "We are totally committed to building this sports and entertainment complex. When completed it will be the most significant venture in the leisure and entertainment field undertaken in the area and will be accessible to 97% of the population of the state located within an hour and a half drive to the facility."
Colonel's will focus on its core manufacturing businesses and on the online marketing of its truck accessory products on http://www.groundforce.com and http://www.ruggedliner.com with the assistance of the E-PAWN.com online marketing expertise.
The Company intends to invest in E-Pawn Inc., http://www.e-pawn.com Pawnshopauctionline, http://www.pawnshopauctionline.com as well as the UBUY NETWORK http://www.ubuynetwork.com as a means of participating in the explosive growth currently being experienced in the e- commerce Internet sector; the potential being to assist these businesses financially so as to enable them to grow rapidly and to compete with industry giants such as EBAY , Amazon , and Yahoo . The initial investment would be up to ten million dollars in a stock swap with E-PAWN, but have options to increase its investment up to one hundred million dollars over a five-year period. The company believes this investment opportunity to be unique, and one that could grow so fast that it could lead to the creation of a pure Internet investment vehicle, as a separate entity which could potentially be spun off to shareholders as a future stock distribution, in much the same manner as the racetrack and sports and entertainment division are now being distributed to shareholders.
The Private Securities Reform Act of 1995 provides a "safe harbor" for forward-looking statements. Certain information included in this Press Release (as well as information included in oral statements or other written statements made or to be made) contains statements that are forward looking, such as those relating to consummation of the transaction, anticipated future revenue of the companies and success of current product offerings. Such forward looking information involves important risks and uncertainties that could significantly affect anticipated results in the future and, accordingly, such results may differ materially from those expressed in any forward looking statements.