ARET NEWS!!!!
LENEXA, Kan.--(BUSINESS WIRE)--July 24, 1998--AmeriResource
Technologies Inc. (OTC BB:ARET.O) announced Friday that it has submitted
an offer for the acquisition of a diversified distribution and
warehousing company with operations throughout Iowa, Minnesota, South
Dakota and Kansas. The company generated in excess of $25 million in
revenues for the year ended December 1997 and had total assets of
$7.1 million.
AmeriResource's offer for the acquisition included $2 million in
preferred stock in the company, $200,000 of the company's restricted
common stock and the forgiveness of certain indebtedness.
Additionally, the current working owners would receive employment
agreements for the next two years with an option to continue at 90% of
their salary (averaged over the last three years). Rod Clawson, vice
president, stated, "This acquisition is going to provide ARET a
revenue and earnings base that will allow us the ability to internally
fund, if required, various projects in hydroponics, construction,
engineering and other Native American ventures."
Delmar Janovec, president, stated: "What makes this acquisition
so attractive is that we will be able to complete it without depending
on any outside funding. The company's owners will be able to bring
their operations into ARET and continue to take part in its growth.
The way this acquisition is structured, we can complete it with our
own resources and with very little dilution."
Upon acceptance of a final offer, which management expects within
30 to 60 days, complete details of the transaction will be released.
The acquisition, among other criteria, will be subject to board
approval.
AmeriResource Technologies Inc. is a holding company that,
through its subsidiaries, is a full service mortgage, consulting and
design/construction firm based in Lenexa, specializing in construction
management services and economic development both within and outside
the Native American Community.
This release may contain forward looking statements that involve
risks and uncertainties, including without limitations, continued
acceptance of the company's products and services, increased levels of
competition, new products and technological changes. The company's
dependency on financing third party suppliers and intellectual
property rights, and other risks detailed from time to time in the
company's federal filings, annual reports, offering memorandums, or
prospectus.
--30--jd/mi*
CONTACT: Barry Denslow or Dick White Robert Solarchik
Telephone, 913/859-9292 800/913-9767
Fax, 913/859-9520 954/346-5796
KEYWORD: KANSAS
INDUSTRY KEYWORD: BUILDING
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