The Colonel's International, Inc. Announces New Location of Headquarters and Other Matters
21 July 2000
The Colonel's International, Inc. Announces New Location of Headquarters and Other Matters
TECUMSEH, MichThe Colonel's International, Inc. (the "Company") today announced that it would soon be moving its headquarters from Tecumseh, Michigan to 951 Aiken Road, Owosso, Michigan 48867. The move comes as part of the Company's efforts to consolidate its bedliner production operations at its Owosso location.On June 29, 2000, The Colonel's, Inc., a subsidiary of Company, closed on the sale of the Company's Tecumseh headquarters for a sale price of $6.3 million. Under the terms of the sale, the buyer, which to date has paid a total of $1 million toward the purchase price, has the option to pay off the entire purchase price for an additional $5 million on or before July 29, 2000 (which would result in a $300,000 discount). If the buyer does not choose this option, then the balance of the purchase price must be paid by July 29, 2001, although the buyer could extend that deadline by an additional year by paying the Company $250,000 and continuing to make the monthly payments required under the land contract.
The Company conducted only a minimal amount of production activities at its headquarters in Tecumseh. Discussing the move, Donald J. Williamson, the Company's President and Chief Executive Officer, said: "We believe that moving our headquarters to Owosso and consolidating our manufacturing operations there will allow us to more efficiently produce products and will result in savings to the Company over the long run. The sale is also positive because it provides the Company with a substantial amount of cash to be used in operations."
Sale of Assets of The Colonel's Rugged Liner, Inc.
The Company also previously reported that as of June 22, 2000, but effective as of May 1, 2000, it closed on a transaction with International Liner Company, a corporation controlled by Mark German, the Company's former President. Under the terms of this transaction, the Company sold certain inventory, items of property, plant and equipment, and accounts receivable to International Liner. These assets had a book value to the Company of approximately $2.1 million. In exchange for these assets, International Liner paid the Company approximately $362,000 in cash and Mr. German and the other former shareholders of Rugged Liner, Inc., Triad Management Group, Inc., Aerocover, Inc., and Ground Force, Inc. (the "Rugged Liner Companies") surrendered to the Company 340,521 shares of the Company's Common Stock and released all claims to further amounts due them under the terms of the 1998 Merger Agreement between the Company and the Rugged Liner Companies. The Company retained the trade name RUGGED LINER and will continue to market and sell bedliners, bedmats and other truck accessories domestically using The Colonel's Rugged Line of Product theme out of its Owosso, Michigan location. International Liner will manufacture and sell bedliners exclusively outside of the United States from its Mt. Braddock, Pennsylvania facility. As a result of this transaction, the Company now considers its previously reported disputes with the former shareholders of the Rugged Liner Companies resolved.
Development of The Colonel's Brainerd International Raceway
The Company also reported that it continues to make strides on the two-year project to expand its Brainerd International Raceway & Resort located in Brainerd, Minnesota. The 800-acre race facility is host to The Colonel's Truck Accessories AMA U.S. Superbike Classic and an NHRA National Event in August featuring some of the country's top drag racers.
The Raceway consists of a three-mile professional road course, a quarter mile championship drag strip, a go-kart track and modern camping facilities. Located 120 miles north of the metropolitan Minneapolis/St. Paul area, the facility is located in the heart of the Minnesota lakes country. The Company's development plans include the addition of condominium units and a hotel. Phase one of a two-phase project to improve customer accommodations is currently underway. At present, six fully furnished condominiums are available for occupancy and another twelve are under construction. If required zoning and building approvals are obtained, phase two may consist of additional condominium units, a 125-room hotel and a convenience store.
According to Scott Quick, General Manager of The Colonel's Brainerd International Raceway, "We will continue to transform our Brainerd race facility into one of the finest motorsports complexes in the country. Dedication to our lodging, camping customers, racing competitors and the sport of racing will continue to be a primary focus."