Today's News Release:
NEWS RELEASE TRANSMITTED BY CANADIAN CORPORATE NEWS
FOR: CARBITE GOLF INC.
VSE SYMBOL: CAB
JUNE 10, 1996
Carbite Golf Acquires Remaining 50 percent of Carbite Inc.
by Exercising Option
VANCOUVER, BRITISH COLUMBIA--Carbite Golf Inc. wishes to announce
that in accordance with its Agreement dated September 21, 1994, it
has exercised its option to acquire the remaining 50 percent of
Carbite, Inc. The acquisition, which is subject to regulatory and
shareholder approval as well as final documentation so as to minimize
the tax consequence to the selling shareholders, will see Carbite
Golf Inc. issue a total of 6,780,000 common shares as well as 917,000
share purchase warrants having a two year term exercisable at a price
of $1.15 per share in year one and $1.50 in year two. As well, the
Agreement contemplated the issuance of a share bonus to the
principals if certain minimum sales targets were achieved. Sales of
Carbite, Inc. for the first 5 months of this year total
approximately $6.5 million Canadian with a net income of
approximately $475,000 Canadian resulting in Carbite, Inc. exceeding
its June 30, 1996 sales target and well on its way to exceeding its
June 30, 1997 sales target. As a result, Carbite Golf Inc. will
issue a 815,000 share bonus to be allocated amongst the principals.
Mike Spacciapolli and Chester Shira have agreed to join the Board of
Directors and Chester Shira will assume the role as Chairman of the
Board. They will also enter into 2 year employment contracts with
Carbite Golf Inc. Don Quast has agreed to resign from the Board to
make room for the new additions.
Carbite Golf Inc. is also pleased to announce that Gene Littler has
agreed to join the Board of Directors. Gene Littler, a 29 time PGA
tour winner and 6 time Senior tour winner, currently plays on the
Senior tour and is exempt from having to qualify for as long as he
wants to play. In consideration for him joining the Board, Carbite
Golf Inc. has agreed to allocate him 200,000 options for a 2 year
term exercisable at a price of $1.35 per share. He has agreed to
carry a Carbite golf bag and wear a Carbite cap as well as serve as a
Director. Carbite Golf Inc. will have the exclusive rights of Mr.
Littler's name and likeness for endorsement of golf clubs for any
advertising or promotion and he will be available for a certain
number of promotional appearances.
Carbite Golf Inc. has also agreed to allocate to Jerry Foltz up to
50,000 options for 2 a year term exercisable at a price of $1.35 per
share in consideration for him agreeing to wear the Carbite logo on
his hat and carry a Carbite golf bag. Jerry Foltz, a Nike tour
player, won the Nike South Carolina Classic 1995 playing a full set
of Carbite irons. Carbite Golf Inc. will be able to use Mr. Foltz's
name and likeness for endorsement of golf clubs for any advertising
or promotion and he will be available for a certain number of
promotional appearances.
Carbite, Inc. which is based in San Diego specializes in utilizing
the newest advances in powder metal technology to manufacture game
improvement golf equipment. Carbite products are sold under the
Carbite, Viper Bite, Checkmate, Baxpin, Checkmate Diamond Face and
Dual-Density names. Carbite also licenses the use of its technology
to Taylor Made Golf Co., Inc.
This Press Release was prepared on behalf of the Board of Directors
by the undersigned who accepts full responsibility for its contents.
ON BEHALF OF THE BOARD
RONALD L. REIMER,
President and Director
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Today's closing info: high - $1.95, low - $1.65, close - $1.75, volume - 231,000
Clearly, there was a lot of profit taking today. Not an unreasonable thing since this company was at $1.00-$1.15 for the past few months. However, for every seller there was a buyer and a new base level is being set.
There is lots of room here for growth.
Bill |
