Carbite Golf Inc. acquired 50% of Carbite Inc.,a company based in San Diego. A letter to the shareholders states the following:
Carbite Inc. is a San Diego based privately held golf club manufacturer and distributor. They specialize in utilizing the newest advances in patented powder metallurgy tehnology to manufaxture game improvement golf equipment. A two year licensing agreement with Taylor-Made was arranged in January,1995 under which Taylor-Made will produce and sell Tour Wedges usin Carbite insert technology.
Carbit also licensed its technology to a joint venture of which Carbite is a 51% owner. The joint venture produced a television informercial featuring the Viper Bite wedge which is now being run on a regional basis nationwide with excellent results. Carbite products are sold under the names Carbite, Viper Bite, Checkmate, Baxpin, Dart Diamond Face and Dual-Density. Following the last infusion of capital from teh Company, Carbite Inc. will be more agressive intheir growth efforts towards advertising, staffing of key positions, more appropriate inventories and research and development.
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Once Carbite Golf Inc. completes its takeover of Carbite Inc. there will be ±16-20 million shares outstanding. Carbite Inc. has experienced strong growth over the past few years with sales as follows:
1993 350,000
1994 750,000
1995 2,900,000
1st Q '96 2,200,000
2nd Q '96(proj) ±4,000,000
Currently trading $1.49 Cdn |
