Thursday April 19, 10:11 am Eastern Time
Press Release
Peacock Financial Signs Joint Venture Agreement With Jugular, Inc.
SAN DIEGO--(BUSINESS WIRE)--April 19, 2001--Peacock Financial Corporation (OTCBB:PFCK - news) 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.
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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.
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Contact:
Peacock Financial Corp.
Robert Braner, 909/652-3885
or
Stock Enterprises, Inc.
James Stock, 702/614-0003 (Investor Relations)
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