Here is the RELEASE, not much market reaction yet:
Dawcin International signs letter of intent to purchase Air & Space America and
spins off two divisions
BusinessWire, Monday, March 10, 1997 at 10:06
GARDEN CITY, N.Y.--(BUSINESS WIRE)--March 10, 1997--Dawcin
International Corp. (OTC: DAWC) has recently signed a letter of
intent with Air & Space America Inc. to purchase all of their assets
for approximately $1,250,000 in cash, with Air & Space America
retaining five percent ownership of its company.
This company owns the rights and patents to the 18A Heliplane,
which is currently the only gyroplane licensed by the Federal
Aviation Administration (FAA). The 18A Heliplane is one of the
safest and most versatile aircraft currently in existence and is
virtually crash proof. The aircraft is a helicopter/airplane hence,
the name heliplane.
The primary advantages of the heliplane are that its purchase
price is approximately 40% less expensive than a standard helicopter
in its class. Furthermore, the heliplanes' operating costs are half
the price of a comparable helicopter. While it can go as fast as
other helicopters, it has the ability to cruise at low speeds, much
below the capability of all known helicopters in its class.
Edward M. Carfero, president of Dawcin stated, "Dawcin's plan is
to relocate much of Air & Space's operation to Long Island. Air &
Space's flight training facility will remain in Kentucky, but all of
the design, test and manufacturing functions will be moved to Long
Island. Long Island has the facilities and a highly skilled work
force who over the years have designed and built some of the
greatest aircraft that ever flew."
Dawcin International Corp. is also announcing the sale of its
wholly-owned subsidiary, Berwyn Holdings Inc., the service company
for its bank credit card activities. Dawcin will retain the
marketing activities in its Command America division. The
transaction was made for approximately $1,750,000, in addition to
50% of the profits generated by Berwyn from existing Dawcin
clientele, (banks and/or affinity/co-branded groups). The company
was sold to Century Financial Services Inc., a Florida based credit
card servicing company.
Dawcin International Corp. announces the spin-off of its
mortgage banking division, First Equities Corp. The transaction
resulted in a distribution of all First Equities shares originally
issued for this transaction to be distributed on a quid-pro-quo basis
to Dawcin shareholders as of Dec. 10, 1996. First Equities is
planning to file a 15c2-11 to become a trading company. The shares
issued to the Dawcin shareholders as a result of this transaction
will be 144 shares.
William G. Lucas, chairman and CEO of Dawcin International
announced that "The company is changing its direction, from a
financial services company to a diversified niche market company
that will seek to build a variety of companies until the companies
can develop enough revenues and profitability to be spun-off as
public entities of their own. The plan calls for a percentage of
the shares of all spin-off companies to be issued directly to the
Dawcin shareholders of record at the time of the transaction. In
this way, the shareholders of Dawcin will participate in all of
Dawcin's future transactions, therby developing a portfolio of
shares in a number of companies at no additional cost."
Dawcin currently consists of four wholly-owned subsidiaries.
They are Command America Corp., a marketing company; Capital One
Corp, a merchant banking company; Integrated Systems International
Inc. (ISI), a computer oriented high-tech consulting firm; and
Franklin Credit and Leasing, a commercial brokerage firm.
CONTACT: Dawcin International Corp.
Investor Relations
800/338-9199
or
Air & Space America Inc.
I. Donald Farrington
502/898-2403
KEYWORD: FN NEW YORK FLORIDA KENTUCKY
INDUSTRY KEYWORD: BANKING AEROSPACE/DEFENSE MERGERS/ACQ |
