Investor Contact Information:Marge Rohr at (909) 861-3244 or investors@bluetorchinc.net, and Geoffrey Eiten, OTC Financial Network, (781) 444-6100 x613 or
Bluetorch Inc. Maps Out New Strategy
Friday March 18, 9:52 am ET
LOS ANGELES, March 18 /PRNewswire-FirstCall/ -- Bluetorch Inc. (OTC Bulletin Board: BTOR - News) announced today that it has created and implemented a revised business model for the company. Management and Board of Directors have been reviewing all aspects of the business. The underlying objective of this evaluation was to ensure that the company pursues a business approach that has the potential of producing fundamental values for its shareholders.
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The Directors and management have determined that, as a Business Development Company, future investments will be focused on companies that have entry level positive cash flow financial statements. Additionally, the investments must have the potential for growth based on existing core factors, additional capital infusion if required and, if necessary, the introduction of an experienced management team that has a reasonable expectation of expanding the existing business.
While the Directors and management remain bullish on the extreme sports apparel sector, and Island Tribe in particular, management will be reviewing acquisition opportunities to include all consumer products categories to provide for a diversification in an expanded portfolio of subsidiary companies. The Board and management feel strongly that this new direction will both reduce the risk for the Company and its shareholders as well as provide the best opportunity for long-term shareholder value.
Consistent with this new strategy, the Company has identified and initiated discussions with several potential acquisition candidates.
The company will continue to provide funding for Island Tribe Inc., a subsidiary in which Bluetorch Inc. owns 51% of the common stock. Management remains confident in the prospects for this unique surf apparel label and its potential for continued growth.
Regarding two of the Company's subsidiaries, Total Sports Distribution Inc. and Unboxed Distribution Inc., the Board and management have determined that these investments are not in conformity with the new business model in terms of current and future profitability. Therefore, it has been determined that it is not in the best interests of the company or its shareholders to continue the flow of capital to these two subsidiaries. Accordingly, the Company has written off its investments in these two subsidiaries.
Specifically, the Company has signed a mutual release agreement with the Bluetorch licensor which requires the Company's subsidiary, Unboxed Distribution Inc., to cease the selling and marketing of Bluetorch apparel. In keeping with this agreement, the Company also agrees to change its corporate name by April 20, 2005.
Bruce MacGregor, President and CEO of Bluetorch Inc., stated, "It is clear to us that the fastest way to profitability lies in our ability to acquire or invest in entities that are already cash flow positive whereby these businesses would already be established in the marketplace as it pertains to product, distribution and revenue. We are presently in discussion with several entities that are consistent with this investment philosophy. In addition, we remain positive about the progress management is making at Island Tribe. I wish to stress that this strategic direction is based solely on what the management and Board of Directors see as the best long-term interest of the company and its shareholders."
Future communications from the Company will be forthcoming as we update our shareholders on our acquisition endeavors.
In other news, the Company announced that Shane Traveller has resigned from the Board of Directors of Bluetorch Inc. As a result, the Company announced that Mr. Ken Wiedrich has been appointed to the Board of Directors to fill the vacancy created by Mr. Traveller's resignation and will serve as Chairman of the Board's Audit Committee. Mr. Wiedrich has over 33 years of experience in operational accounting and finance functions in a variety of businesses within the service, construction and manufacturing industries. Mr. Wiedrich has experience with government cost accounting methods and all related government acquisition regulations. In his capacity as the Chief Financial Officer for RI-Tech, Inc., he was responsible for the day to day administrative functions of the company, as well as all accounting and financial aspects of the business. Mr. Wiedrich was involved in raising money through a private placement and the long term financing for Ri-Tech.
Mr. Wiedrich presently serves as the Chief Financial Officer and Secretary of S3 Investment Company and GTREX, Inc., both of which are regulated business development companies under the Investment Company Act of 1940. He has a B.A. degree in economics from Northern State University in South Dakota.
Annual Meeting:
The Annual Meeting scheduled for Friday March 25, 2004 has been postponed. It is our intention to have the Annual Meeting within the next four months.
About Bluetorch Inc.
Bluetorch Inc. is a public investment company and operates as a Business Development Company ("BDC").
As an investment company that has elected to be treated as a "business development company" under the Investment Company Act of 1940, Bluetorch Inc. is looking to invest in companies that can demonstrate a history of positive cash flow and economic fundamental values prior to the acquisition. These entities will have the prospect for expansion from their existing profitable base as a result of access to additional capital and/or additional management acumen.
As part of this strategic process, the Company will look for acquisition opportunities in all consumer product categories that have the potential for a positive return on investment, both in terms of current income and capital appreciation.
Investor Contact Information:
Marge Rohr at (909) 861-3244 or investors@bluetorchinc.net, and
Geoffrey Eiten, OTC Financial Network, (781) 444-6100 x613 or
geiten@otcfn.com. Safe Harbor:
This release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The risks and uncertainties that may affect the operations, performance development and results of the Company's business include but are not limited to fluctuations in financial results, availability and customer acceptance of our products and services, the impact of competitive products, services and pricing, general market trends and conditions, and other risks detailed in the Company's SEC reports.
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Source: Bluetorch Inc. |
