PFCK - Peacock Financial Signs Joint Venture Agreement With Jugular, Inc.
Business Editors
SAN DIEGO--(BUSINESS WIRE)--April 19, 2001--Peacock Financial
Corporation (OTCBB:PFCK) announced today that it has entered into a
joint venture agreement with Jugular, Inc. of Huntington Beach,
California (www.jugular.com) to pursue licensing and marketing
opportunities for Jugular's trademarks in the Japanese market.
Jugular, founded in 1996, is a recognized leader in extreme sports
products and has registered trademarks worldwide. The new joint
venture entity, named Jugular Japan, has been granted exclusive master
licensing and branding rights for all of Japan. Peacock Financial and
Jugular will share ownership and revenues from Jugular Japan equally,
with Peacock serving as the managing partner. Tammy Dunn, a member of
Peacock's management team, will be managing director of the new
venture.
Robert Braner, Interim President and Managing Director of Peacock,
said, "This joint venture is one of the first examples of Peacock's
new strategy of capitalizing on the expertise of its management team
to develop new revenue opportunities for the company. Ms. Dunn is
ideally suited to the role of managing our first move into the
Japanese marketplace. She speaks fluent Japanese, has spent years
living and working there, and has extensive contacts and relationships
with major licensing players in the Japanese market. Licensing and
branding opportunities developed by Ms. Dunn should rapidly develop
positive revenue streams for Peacock without requiring additional
overhead or staffing."
Michael Lajtay, founder and President of Jugular, Inc., stated,
"I'm very excited about the formation of Jugular Japan to focus on
this crucial market. I have absolute confidence that I have chosen the
right partners to realize the full potential of the Jugular brand and
take it to new heights. Jugular Japan is the latest milestone in
Jugular's remarkable history, and further helps solidify our
leadership position in this multi-billion dollar industry. No other
extreme or action sports brand has the global reach and power of
Jugular. In Japan last year, team Jugular swept all medal categories
in the Core Xtreme Summer Games for both street luge and downhill
skateboarding. In 2001, we are poised to repeat this performance on
national television. I do not need to elaborate on the tremendous
marketing value such a performance would have for our brand
recognition and the additional demand it would create for Jugular
licensed products."
As her first step in the execution of Jugular Japan's strategy,
Ms. Dunn has already entered into a Memorandum of Understanding with a
Japanese business partner, I. Fujita International. Fujita, with whom
Ms. Dunn has a prior relationship, is a large, privately-held
consulting firm that assists non-Japanese companies in introducing
products, brands and concepts into the Japanese market, with a focus
on sports entertainment.
Ichiro "Roy" Fujita, founder and President of I. Fujita
International, stated, "I am delighted to be working with Ms. Dunn on
the introduction of the Jugular line into Japan. The Japanese market
has just begun to realize and capitalize on the attraction of the
extreme sports industry that has grown so rapidly in the U.S. market
in recent years. We have the opportunity to be in on the ground floor
and explore numerous avenues to capitalize on the well-known Jugular
brand."
Robert A. Braner, Interim president and Managing Director, added,
"This joint venture is an example of one approach we are using to
build Peacock's assets and income, namely to provide contacts,
strategic planning and management expertise in exchange for partial
ownership or revenue participation in profitable ventures, while
requiring little or no capital investment or dilution on Peacock's
part. Clearly, to the extent that we accomplish this, we are building
an earnings base which should be reflected in the value of the Company
and the stock over time.
"A second approach, of the type being structured with respect to
other acquisitions, is to bring in the venture as a wholly owned
subsidiary in exchange for convertible preferred stock, which will
convert to common stock over time. This avoids diluting Peacock for
the acquisition based on Peacock's current market cap, instead
allowing the revenues and profit contribution of the acquisition to
enhance the value of the stock, and then using the enhanced stock
price to fund the acquisition. In essence, we allow the acquisition to
help pay for itself. The value of this approach to Peacock and its
shareholders is obvious.
"Our acquisition candidates are willing to consider such an
approach for a number of reasons. They gain the advantage of our
management expertise and access to additional financing. They see the
potential for additional acquisitions by Peacock in their field or
industry, thus allowing a 'roll-up' strategy that would add to the
value of their Peacock holdings. They gain liquidity for a portion of
the value they have built up in their company. And they gain immediate
access to our large and actively involved shareholder base -- where
positive and profitable additions to the Peacock family of companies
are apt to be quickly reflected in the stock price. In a sense, in
addition to our Management team and the contacts and expertise that
they and the Board bring to the table, one of Peacock's significant
assets as it pursues this acquisition strategy is actually its
shareholder base. We are grateful for their support and loyalty, and
look forward to being able to continue to meet or exceed their
expectations."
Safe Harbor Statement under the Private Securities Litigation
Reform Act of 1995: Statements contained in this document which are
not historical fact are forward-looking statements based upon
management's current expectations that are subject to risks and
uncertainties that could cause actual results to differ materially
from those set forth in or implied by forward-looking statements. The
Company is not required to update its forward-looking statements.
--30--slk/la* kr/la
CONTACT: Peacock Financial Corp.
Robert Braner, 909/652-3885
or
Stock Enterprises, Inc.
James Stock, 702/614-0003 (Investor Relations) |
