Arete Industries, Inc. Initiates Venture to Acquire Interests in Minor League Sports Franchises and Appoints a New Director
BOULDER, Colo., Dec 21, 2001 (BUSINESS WIRE) -- Arete Industries, Inc.
(OTCBB: AREE) today launched a new business development venture to acquire and
manage ownership interests in professional minor league hockey and baseball
franchises by signing a non-binding letter of intent with Mr. William W. Stewart
of Highlands Ranch, Colo. Also, in connection with the new venture, the Company
has appointed Mr. Stewart to its Board of Directors, effective immediately.
Thomas P. Raabe, CEO of Arete stated, "I'm extremely pleased to introduce Bill
as a member of our team. Bill, a native of Manitoba, Canada has athletic and
business background in professional sports. Bill played hockey at both the
collegiate and professional levels. He attended the University of Denver on an
athletic scholarship where he was drafted by the NHL's Minnesota North Stars in
his freshman year. Upon graduation, Bill joined the North Stars farm team. Bill
has recent background as a part owner and managing partner of an AA professional
hockey team on the East Coast. Since leaving hockey as a player, Bill held
positions in financial services firms including Boettcher & Co., E.F. Hutton,
and Dain Bosworth. Since approximately 1994, Bill has been an independent
investor and entrepreneur, investing in young public and privately held
companies and in real estate development. Bill has recently done considerable
research and groundwork for the project, and believes there to be viable
opportunities to acquire, fund and develop new and existing professional minor
league baseball and hockey franchises. Bill sees a key advantage to associating
with a publicly held company like Arete to enhance his chances of success in
accomplishing this plan. As a director of the company, I can see nothing but
positives for the company and its shareholders coming from Bill's financial and
entrepreneurial background and his unique experience and contacts in both the
financial services and professional sports communities."
Mr. Stewart stated, "I am very pleased to become a part of the Arete team and
believe that I have an enhanced opportunity for my project to succeed within
Arete's unique and sophisticated business model. To succeed, it is going to take
a lot of hard work and support from the other members of the team, whom I find
to be highly skilled and qualified to provide that support."
The letter of intent precedes a definitive agreement, to be negotiated, which is
intended to be closed upon the formation of a new subsidiary of Arete and the
contribution of Mr. Stewart's present interest in one existing franchise and in
certain negotiations to purchase certain other franchises, in exchange for a
majority equity position in this new subsidiary. Thereafter, the subsidiary will
endeavor to complete the pending transactions and to acquire and develop
additional sports franchises. As these opportunities become viable, the Company
has agreed to distribute a portion of its equity in the subsidiary to its
shareholders through a registered stock dividend, subject to approval by state
and federal securities authorities. None of the transactions that are
contemplated to take place are certain to close at this time.
Acquisition by the proposed subsidiary of the currently identified and
prospective franchises will be subject to certain contingencies and
uncertainties, including acquiring sufficient funding to secure franchises,
leasing appropriate facilities in acceptable markets, approval by the various
leagues and obtaining the consent of Mr. Stewart's current partners.
"This structure and the business opportunity we're pursuing together fits the
new business model we have designed for Arete Industries to function as a
publicly-held business development company," continued Raabe.
NOTE TO EDITORS: In the company name Arete Industries, Inc. noted in this news
release, there is an accent circonflex above the first "e" in "Arete".
CONTACT: Stock Enterprises, Inc.
James Stock, 702/614-0003
ir@areteindustries.com
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