Wednesday November 13 11:41 AM EDT
Nemdaco Retail Sales Acquires Woleko Industries, The Manufacturer Of
A New Type Of Automobile Airbag
LOS ANGELES, Nov. 13 /PRNewswire/ -- Nemdaco Inc , today announced the resignations of Gary Larkin and Sam Stearman as officers of the Company effective October 4 and as Directors effective November 1, 1996. Both Mr. Larkin and Mr. Stearman wish to pursue other business opportunities. Anlise M. Cross, the Company's Secretary, has been appointed to the Board to serve out Mr. Larkin's unexpired term. Mr. Stearman's seat remains vacant until a suitable replacement is found to replace him. Thomas D. Siciliano, Jr. has been named as the new CFO of the Company. Mr. Siciliano, age 31, is the President of Hunster Associates, Chatsworth, CA and the President of Seaport Capital, South Pasadena, CA. The Board is considering a number of applicants for the President position and will announce the appointment shortly.
Further, Nemdaco Retail Sales, Inc., a wholly owned Nemdaco Subsidiary has entered into an agreement to buy all of the assets and certain liabilities of Double Eagle Ltd. Inc. of Fresno, California for 3,000,000 shares of its common stock and the assumption of $32,701.00 of trade debt. Double Eagle has developed and patented a portable air bag that solves one of the major safety problems in the automotive industry. The Double Eagle Air Bag mounts on a car's seat belt and faces away from the passenger, thus the force generated when the air bag is activated is away from the passenger, eliminating the possibility of causing bodily harm to children or adults. The air bag is portable and can be moved from car to car. The suggested retail price of the air bag is $499.00. Pretax profits are expected to be 21% or $104.79 per unit.
Jeff Bender said that the Board of Directors of the Company has passed a Resolution in keeping with the terms of the Agreement, changing the name of Nemdaco Retail Sales, Inc. to Woleko Industries, Inc. He further stated that the Board declared a stock dividend to all Nemdaco shareholders of record on December 15, 1996 of one fourth share of Nemdaco Retail Sales/Woleko for each share of Nemdaco, Inc., owned on that date. Mr. Bender stated that Nemdaco, Inc., will retain
approximately 4,000,000 shares of the spin off for the benefit of all current and new Nemdaco shareholders. He estimated that Nemdaco Retail Sales/Woleko will have approximately 12,000,000 shares of its common stock issued and outstanding when it starts to trade early next year.
Mr. Bender said that Nemdaco, Inc. has no responsibility to fund any working capital or other monies for this transaction and that Nemdaco Retail Sales/Woleko has entered into a Financial Consulting Agreement with Coubert Dennis Limited to arrange a private placement of Nemdaco Retail Sales/Woleko common stock to raise $250,000 to fund its working capital requirements. SOURCE Nemdaco Inc. |
