biz.yahoo.com
Monday February 1, 6:01 am Eastern Time
Company Press Release
SOURCE: Carver Corporation
Carver Announces Agreement With Bob Carver
SNOHOMISH, Wash., Feb. 1 /PRNewswire/ -- Carver Corporation (the ''Company'') today announced that it has executed an agreement with Robert W. Carver, its founder, Chief Executive Officer and Chairman of its Board of Directors, and with Mr. Carver's privately-held Sunfire Corporation for Sunfire to (i) direct the development, manufacturing, marketing and distribution of a new line of products for the home and car under the ''Carver'' brand name that incorporates certain new technologies, (ii) establish a new manufacturer's representative and independent dealer network, in order to rebuild Carver Corporation as a dominant force in the USA as a manufacturer of consumer audio electronics, and (iii) for Mr. Carver to assume full operational control of the Company pursuant to the operating agreement.
As consideration for such services, Mr. Carver will be granted an 80% ownership interest in Carver Corporation, subject to shareholder final approval. In addition, a repurchase option will be granted to the Company which may be executed under certain specified conditions. As previously announced, the Company and Sunfire may merge within 18 months, again, subject to certain criteria and Mr. Carver's discretion. The shareholders of Carver Corporation would retain a 20% ownership interest in the combined entity following such a merger. The terms of the operating agreement and granting of ownership interest to Mr. Carver are subject to shareholder approval, and shall be presented in a proxy package in advance of a shareholder meeting to be scheduled as soon as practicable in early 1999.
In response to the execution of this operating agreement, Mr. Carver stated, ''I am very excited to have this opportunity to rebuild the Company I founded so long ago, and am confident that the independent dealers will be receptive to Carver Corporation's new products. Sunfire and Carver products serve distinct segments of the market, and should complement each other extremely well. The Board of Directors and I share a desire to maximize value for all shareholders, and believe that the opportunity presented in my business plan will evidence this upon receipt of the proxy package that will be distributed to them''
The Company also announced that its Chief Operating Officer, Fred Grund and one of its directors, James McCullough have resigned. Prior to Mr. Carver's arrival, the Company had previously announced certain other operating strategies, including distribution of products through the Internet, but was forced to seek alternatives due in principal to a lack of operating capital and a lack of new products and technologies.
Bob Carver recently introduced a number of new Carver-branded products including a 200 watt per channel five channel Dolby Digital/DTS receiver, a high pressure, high back-emf subwoofer for home theater, a 300 watt miniature (the size of a pack of cigarettes) amplifier for automobile subwoofers and two companion subwoofers. These were shown at the Consumer Electronics Show that was held in Las Vegas, Nevada earlier this month. Each of the products contains new technology; an exception is the receiver, and it stands alone in the marketplace as the most powerful five channel receiver there is.
Forward Looking Statement
Statements in this news release looking forward in time, including those concerning development and delivery of new products, are forward-looking statements which involve known and unknown risks, uncertainties and other expressed or implied by such statements. These risks include the effect of changing economic conditions, trends in the audio components market, product demand and market acceptance risks, and other risks including those described from time to time in the company's Securities and Exchange Commission filings and other communications.
SOURCE: Carver Corporation
--------------------------------------------------------------------------------
More Quotes and News: Carver Corp (OTC BB:CAVR - news)
Related News Categories: computers, retail
--------------------------------------------------------------------------------
|
