Former Bagel Store Owner Buys Control of Thai Motorcycle Outfit
2 December 1997
NABCO, Inc. to Acquire Control of Hai Nan Jia-Thai Motorcycle Co., Ltd., For $20 Million in Stock
NEW YORK, Dec. 2 -- NABCO, Inc. (OTC Bulletin Board: NBCO),
announced today that it has agreed to acquire a 55% interest in Hai Nan
Jia-Thai Motorcycle Co., Ltd., located in the Peoples' Republic of China for
$20 million in NABCO, Inc., common stock. Hai Jia-Thai Motorcycle Co., Ltd.,
in turn, owns 60% of China Jia Ling Corporation Group and 40% of Thailand Yu
Tai Trading Corporation. The Company was established in 1992 as a
co-investment corporation and is approved by Hainan Province economic
department, Qiong Jing He Zi License No. 492. The Company is located at Dong
Xin Industrial Section, Wan Ning City, Hainan Province. The Company reported
audited consolidated assets of $23.1 million (U.S. Dollars), and shareholders'
equity of $7.7 million at December 31, 1996. The Company reported audited
consolidated earnings of $3.8 million and 12-month revenue of $42.1 million
for the fiscal year ending December 31, 1996. The Company said it expects
revenue and earnings for fiscal year ending December 31, 1997 to be about
10% greater than for 1996.
NABCO, Inc. president, A. Jay Boisdrenghien, said, "Under Generally
Accepted Accounting Principles (GAAP), our Company will be acquiring about 55%
of Hai Nan Jia-Thai Motorcycle Co., Ltd., and we will, therefore. report 55%
of their revenue as ours, or about $23.1 million, and earnings of about
$2.1 million. We will report additional assets of about $12.9 million, and
we'll add about $4.4 million to our shareholders' equity. We plan to exchange
about 5,000,000 shares of our authorized, but unissued common stock which will
translate into earnings of about 34-cents per share. We would hope that the
market will allow us a fair price-to-earnings multiple, as we'd like to apply
for a listing on the NASDAQ National Market System (NMS) exchange when, and
if, our share price exceeds $5.00 per share. We are quite excited about this
tremendous addition to our Company. We think a cash infusion of about $10
million, through private placements and/or a public offering would allow the
Chinese motorcycle company to reach annual revenues of more than $100 million
and earnings of more than $10 million. We will immediately begin discussions
with our investment banking firm and others to seek the expansion capital
needed. The motorcycle company currently manufactures small to medium-sized
motorcycles for the Chinese market but we think there are additional global
opportunities."
NABCO, Inc. is a Denver, Colorado based holding company which previously
sold its 12 bagel stores, production plant, and franchise stores to
Progressive Bagels, now known as Einstein's Bagels, to seek out other business
opportunities. The Company's stock is traded in the over-the-counter market
under the trading symbol "NBCO."
The statements included in this press release contain certain
forward-looking statements regarding the Company, its business, prospects and
results of operations that are subject to certain risks and uncertainties
posed by many factors and events that could cause the Company's actual
business, prospects and results of operations to differ materially from those
that may be anticipated by such forward-looking statements.
Factors that may affect such forward-looking statements include, without
limitation: the Company's acquisition of, or failure to acquire, other
businesses; the Company's loss of a large customer or key personnel; the
Company's ability to successfully develop new products for both new markets
and markets currently served by the Company; customer acceptance of new
products; the impact of competition, including the ability to generate
recurring revenue from certain products; and delays in the Company's
introduction of new products from production and transportation difficulties
or acts of God. Accordingly, no assurances can be given that events or
results mentioned in any such forward-looking statements will in fact occur.
SOURCE NABCO, Inc.