Titan Announces Cash Infusion of $2.75 Million and Reduction of Long-Term Debt
PHOENIX, March 13 /PRNewswire/ -- Titan Motorcycle Company of America (Nasdaq: TMOT) announced today that it has reached an agreement for the private sale of the company's convertible preferred and common stock to effect a cash infusion of $2.75 million, and in addition the retirement of $1.0 million in long-term debt and accrued interest. In addition to retirement of debt, proceeds of the equity placement will be used for implementing the company's domestic and overseas marketing plans and for other corporate purposes. Additional details of the transaction were not made available.
"This new equity capital will not only improve Titan's cash position in support of our year 2000 growth plans but will also strengthen our balance sheet by substantially reducing long-term debt," said Frank Keery, Titan's chairman and chief executive officer.
Founded in 1994, Titan Motorcycle Co. of America is a premier designer, manufacturer and distributor of high-end, American-made, V-twin engine motorcycles marketed under various Titan trademarks. Titan's unique, hand-built configurations, including the Gecko(TM), Roadrunner(TM), Sidewinder(TM) and Phoenix(TM) represent the finest available in custom-designed, volume-produced, performance motorcycles. Manufactured at the Company's corporate headquarters and manufacturing facility, and available with a variety of customized options and designs, Titan large displacement motorcycles are sold through a network of over 80 domestic and international dealers.
NOTE: Any statements released by Titan Motorcycle Co. of America that are forward-looking are made pursuant to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. Editors and investors are cautioned that forward-looking statements invoke risks and uncertainties that may affect the Company's business prospects and performance. The Company's statement referencing its growth and profit improvement plans for year 2000 is a forward-looking statement and, as such, is subject to a variety of risks including continued market acceptance of the Phoenix(TM) motorcycle line, availability of funds to support planned growth, effectiveness of the Company's cost reduction efforts and other economic, competitive, governmental, technological and other factors discussed in the statements and in the Company's filings with the Securities and Exchange Commission.
SOURCE Titan Motorcycle Company of America
CO: Titan Motorcycle Company of America
ST: Arizona
IN:
SU: FNC
03/13/2000 06:01 EST prnewswire.com |
