Slim: Sorry to monopolize the board but I would rather post accurately than just flap my gums. Just as matter of note the market price of AWLT stock was somewhere between .38 and .50 at the time of this exchange. Excerpts from the News Release:
Thursday August 7 11:33 AM EDT
Company Press Release
Araldica Wineries Acquires $5 million In Network Broadcast Time
Gears Up For Fall, 1997 TV Product Promotions
NEW ROCHELLE, N.Y.--(BUSINESS WIRE)--August 7, 1997--Araldica Wineries, LTD announced today its purchase of a $5 million block of network broadcast time, which it plans to use this Fall to introduce its proprietary line of premium Italian specialty foods, known as ''The Mediterranean Diet Club'', to American consumers.
Louis Contey, vice president of Araldica, commented that ''We will be using this national broadcast time to air commercials, and an infomercial, to introduce this recently acquired branded name and product line, already known around the world for the past 10 years, to the United States consumer market.
''The planned television exposure is expected to vastly expand our direct response reach, and allows Araldica to increase its asset base immediately by $5 million, which brings the company closer to its goal of filing for NASDAQ listing before the end of 1997.''
The purchase was arranged through Access America Inc. a New Orleans television services company that sold the broadcast time to Araldica, for 2,000,000 of its common shares, valued in this transaction at $2.50 per share. Access America is also assisting Araldica with its commercial and infomercial production.
He continued, ''With approximately eight million shares outstanding presently, and estimates of consolidated earnings per share in the range of six cents, even a relatively low multiple of 25 would produce a price in the $1.00 to $2.00 range. Our largest, publicly traded (wines by mail) competitor carries a multiple of 60, currently. Given our recent trading range of around 50 cents per share, we believe Araldica to be an extremely good value at this time.''
Araldica Wineries LTD (NASD: BB-AWLT) is engaged in the nationwide marketing and distribution of premium Italian wines, olive oils and specialty foods, primarily via direct response promotions to targeted Italian-American consumers, a 20 million-plus niche market. The company's primary focus is its proprietary ''Knights of Italy'' wine series, which offers premium Italian wines, custom-labelled with the heraldic crests associated with each Italian surname.
FOR ADDITIONAL INFORMATION:
Please contact either Louis Contey, Vice President, or Edgar Arguello, Vice President, at the company: 914/636-0500.
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Contact:
Araldica Wineries
Louis Contey or Edgar Arguello, 914/636-0500
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Questions or Comments?
You may want to inquire of Araldica whether or not there is a similar provision in their agreement with "Access" as exists in the MTCI agreement vis a vis market value guarantee and a possible requirement to issue more AWLT should the market value not meet a previously agreed to price.
It may also be of interest to review some of the previous news releases to see how well the company has followed through on it's projections. This one above, in its entirety, makes interesting reading. |
