Friday July 24, 10:30 am Eastern Time
Company Press Release
ARET Submits Offer for Acquisition
LENEXA, Kan.--(BUSINESS WIRE)--July 24, 1998--AmeriResource Technologies Inc. (OTC BB:ARET - news) 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.
Contact:
Barry Denslow or Dick White
Telephone, 913/859-9292
Fax, 913/859-9520
OR
Robert Solarchik
800/913-9767
954/346-5796 |
