>>TC,
Why don't you read the press release, its' all there.<<
Good idea, Pugs, let's parse the press release very carefully.
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GOLDEN, Colo.--Feb. 6, 1998--Travis Industries Inc. (OTC: TVSI - news) announced signing a letter of intent to merge with Planet Sports Inc., a Colorado corporation.
1. A letter of intent is generally a non-binding agreement...no substance here.
The final terms of the merger are currently in negotiation pending completion of a definitive agreement. The name of the company will be changed to Planet Sports Inc. at closing.
2. No change of name until closing. At least they didn't confuse things here like RMIL did.
Planet Sports was formed to acquire leading-edge products, technologies and businesses in the rapidly growing extreme and adrenaline sports marketplace and to take advantage of opportunities provided by the current consolidation in the outdoor sports industry. Planet Sports' management team has developed opportunities which are ready to proceed to a definitive agreement and is in confidential negotiations with several other companies in the outdoor industry.
3. Confidential negotiations.....so we really won't know the real possibilities of this company until each of these negotiations is complete.
Pursuant to the letter of intent, Thomas P. Raabe, chairman and chief executive officer of Planet Sports, will be placed on the board of directors of Travis in anticipation of the merger. Raabe has served as special securities counsel to Travis for the past several years and has been pursuing acquisition opportunities in the outdoor sports industry for the past two years.
4. No big deal, Mr. Raabe (background not very impressive)has been working as an advisor to Travis for some time....putting him on the board doesn't mean a thing.
Steve Cayou, president of Travis, stated that Planet Sports will bring experienced executive management and outdoor industry veterans to the management team of Travis. Cayou further stated that the merger greatly ensures completion of pending acquisitions and will enhance the company's ability to attract substantial candidates with leading-edge, state-of-the-art technology and advanced marketing techniques.
5. "Will bring experienced executive management"......easy to say....again, means nothing at this time. "Merger greatly ensures completion of pending acquisitions"......why?
Of the initial transactions planned, Planet Sports has reached a preliminary agreement to acquire Next Level(TM) Sportsystems Inc. Next Level(TM) has launched a sportswear and apparel line aimed at youth team sports and young urban apparel. Next Level(TM) expects to achieve over $10 million in sales in 1998 to accounts including J.C. Penney and to department stores and mainstream, big-box sporting goods retailers. Next Level(TM) projects growing to in excess of $60 million by the year 2000.
6. Who is Next Level(TM) Sportsystems Inc.? Nobody to my knowledge has been able to find any information about this outfit...."expects to achieve over $10 million in sales" based on what?...the mention of J.C. Penny?....where is the contract?
Next Level(TM) has a unique vision to combine high-visibility marketing and community service through the Next Level(TM) Foundation, a non-profit organization formed to fund and administer programs to inspire America's youth to focus on positive, rather than negative, influences. The company intends its brand and products to be identified with these activities and to attract sponsorships and representation by high-visibility athletes and community leaders. Next Level(TM) currently has several high-profile professional sports figures as investors and spokesmen for the product line.
7. "unique vision to combine high-visibility marketing and community service through the Next Level(TM) Foundation"......"the company intends its brand and products to be identified with these activities....(taken from Nike's strategy)?...."high-profile professional sports figures as investors"....Why would these people invest in this "unknown?"
The management team of Next Level(TM) currently consists of five individuals who are veterans in the men's and women's apparel industry with over 60 years combined marketing experience and 25 years of corporate development experience with major apparel companies. Richard Holcombe, president and chairman of Next Level(TM), has over 28 years experience in the apparel textile industry, including 20 years with Woolrich Inc., where he served on the board of directors and as senior marketing vice president. Holcombe has also served on senior management of Amerex and Rockport Shoe Co. Holcombe is expected to become a member of the Planet Sports team.
8. Can you link to anything that substantiates the background of Mr. Holcombe?
Cayou stated that the merger with Planet Sports and the acquisition of Next Level(TM) are the first steps in a series of planned and potential acquisitions designed to build a $100 million+ outdoor sports and apparel company.
9. Sounds good.....which of course is the purpose of this statement, but anyone can make this statement and not be held responsible for "changing market conditions, etc."
So, tell me Pugs, what did the press release really say?
TC |
