DAN, EVER NOTICE THAT RATCLIFF RICHARD HAD AN ACCOUNT AT THE "MOB ON WALL STREET" BOILER ROOM SOVEREIGN EQUITY MANAGEMENT?
MTXX
Matrixx Initiatives Inc. Nasdaq-NM
Notices of Proposed Sale Reported on Form 144 of RATCLIFF RICHARD Description
Company
Select a company below for more information. Relation File Date Shares Broker
GUMTECH INTL SH 6/1/1998 100,000
GUNNALLEN FINANCIAL INC
GUMTECH INTL D 7/30/1997 45,000
MERRILL LYNCH & CO INC
GUMTECH INTL D 1/13/1997 32,000
SOVEREIGN EQUITY MANAGEMENT CO...
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also where involved in this stock
PRED
ORLANDO PREDATORS ENTERTAINMENT INC
Notices of Proposed Sale Reported on Form 144 of RATCLIFF RITCHARD Description
Company
Select a company below for more information. Relation File Date Shares Broker
ORLANDO PREDATORS ENTERTAINMENT INC N 5/8/2000 23,000
HAGERTY STEWART & ASSOCIATES
ORLANDO PREDATORS ENTERTAINMENT INC N 10/19/1999 51,000
HAGERTY STEWART & ASSOCIATES
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GUM TECH INTERNATIONAL, INC.
NOTES TO FINANCIAL STATEMENTS
10. Related Party Transactions (Continued)
inventory and equipment. The notes were distributed to Dale's two partners in December 1995 and the notes were subordinated to the Company's equipment lease and were repaid in 1996.
On March 24, 1995, the Company entered into an employment agreement with Richard Ratcliff, its then Chief Executive Officer, which provides for a salary, bonus, stock options and loan to Mr. Ratcliff. In March 1996, the employment agreement was amended to delete the bonus provision.
The Company entered into exclusive U.S. and foreign distribution agreements (the "Distribution Agreements") with Bernstein Bros. Marketing Incorporated (doing business as National Distributing) ("National"). National held exclusive rights to market the Company's ChromaTrim gum to retailers within the United States, except retailers in the natural food industry, the private label market or directly to customers ("direct response") through media advertisements and infomercials broadcast on cable television networks. United Merchants, Inc. ("UMI") held rights to market the same products on a direct response basis within the United States and both on a direct response basis and to retail accounts outside the United States.
In January 1996, the Company, National and UMI cancelled their exclusive U.S., and foreign Distribution Agreements. The Company entered into a two year agreement with National pursuant to which the Company agreed to sell National, on a non-exclusive basis, ChromaTrim and CitrusSlim chewing gum for sale by National solely to non-chain convenience stores, grocery stores, drugstores and other similar retail food stores. The Company entered into a two year agreement with UMI pursuant to which the Company agreed to sell to UMI on a non-exclusive basis ChromaTrim and CitrusSlim chewing gum for sale by UMI solely in the United States through direct response television infomercial advertising.
Richard Bernstein, a director of the Company, is an executive officer and director of National and a principal stockholder of UMI. The Distribution Agreements, which primarily relate to the Company's ChromaTrim chewing gum, represented 17.3% and 69.5% of the Company's total sales for the years ended December 31, 1996 and 1995, respectively. Trade accounts receivable from National and UMI combined were $227,047 and $775,130 at December 31, 1996 and 1995, respectively. Payments are generally due within 30 days of the invoice date.
The Company loaned $100,000 to National at 8% interest in December 1994 which was evidenced by a promissory note due in 1995. The $100,000 principal and $3,000 interest was repaid to the Company in March 1995.
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