Magnesium Technologies Acquires Fully Financed National Distribution With Performance Guarantees
LAS VEGAS, June 15 /PRNewswire/ -- In a transaction worth an estimated 7,300,000 over the next 15 months, Magnesium Technologies, Inc.(OTC Bulletin Board: MGTK), today announced an agreement with Dietrick International Ltd. of Brussels to purchase Bicycle frames manufactured by Magnesium Technologies, Inc. for the exclusive distribution rights in the United States of America. Dietrick International and their associated companies have extensive experience in the financing and distribution of foreign manufactured sporting goods equipment in the United States.
The deal, brokered by Brown Financial Advisory Associates of Salt Lake
City, obligates Dietrick International and/or their designated associates to purchase and distribute no less than 2,000 frames (of assorted types) per month starting 3 months after the initial shipment of existing inventory, estimated at 5200 frames.
All shipments will be against a commercial letter of credit and Dietrick International will be responsible for warehousing product in the United States. Under the agreement Marketing and Advertising will be a shared expense.
Magnesium Technologies has reserved the right to operate its own wholly owned e-commerce site for sale of its products directly to individuals worldwide. Start-up for the site is planned for mid-fall, 1999.
This agreement will allow Magnesium Technologies to concentrate on
Canadian and European sales. Due to economic conditions overseas, European sales are only currently averaging 400 units per month. With the increased marketing activity overseas this arrangement will allow, the company feels that this figure can be substantially increased.
According to company spokesman William Coykendall: "This agreement will now allow Magnesium Technologies to continue research and development of magnesium products such as golf shafts and baseball bats and begin the manufacture of the company's line of Wheelchairs."
First introduced at the annual shareholders meeting in May, Magnesium Technologies is pleased to announce the completion of testing on the company's line of ultra lightweight wheel chairs. Besides standard and collapsible ultra light wheelchairs, several models of sports wheelchairs will now be manufactured.
On June 19 and 20 in Primm Nevada Magnesium Technologies will co-sponsor the BMX racing team 'DIRT DEVILS' competing in the Primm BMX Classic, one leg of the HUFFY "Road to Glory" National series. The competition will be televised at a later date.
Magnesium Technologies, Inc. trades on the OTC Bulletin Board: Symbol "MGTK". |
