NBC.TO some very interesting news, all the Canucks, and the golfers should have a look. LOL, I need something to push this sucker back up beyond the $2.00 I paid a year or so ago.
CALGARY, Aug. 26 /CNW/ - The merger to create Nevada Bob's Golf Inc., the
largest chain of golf specialty retail stores in the world, will be finalized
next month according to chief executives of the companies involved in the
transaction. The merger, which will combine Nevada Bob's Canada Inc. (``Nevada
Bob's Canada') with Nevada Bob's Pro Shop, Inc. (``Pro Shop') and GDH
International, Inc. (``GDH'), has been approved by the directors of all of
the companies. The shareholders of Pro Shop and GDH have approved the merger
and a meeting of the shareholders of Nevada Bob's Canada Inc. is scheduled for
September 20, 1999, to formally vote on the combination. The transaction is to
close immediately after this shareholder approval is received.
Pursuant to the share exchange agreement entered into by Nevada Bob's
Canada with the shareholders of Pro Shop and GDH, Nevada Bob's Canada is to
issue 34.5 million shares, and warrants to purchase up to an additional 12.7
million shares, as consideration for the acquisition of Pro Shop and GDH. The
owners of Pro Shop and GDH shall own approximately 60% of the shares of the
resulting company, on a fully diluted basis.
The resulting company is expected to generate greatly increased
system-wide annualized revenues, derived from both retail operations and
manufacturing/distribution operations. Revenues earned from retail operations
are expected to account for approximately 77% of total revenues. The Nevada
Bob's system will initially consist of a total of 247 stores, of which 159
will be franchise locations. The majority of the stores are located in the
United States and Canada.
Management expects the synergies created by the merger will significantly
reduce operating costs as a percentage of revenues. The merger will enable the
Company to eliminate duplicate facilities, increase purchasing power, and
reduce personnel related costs.
Lyle P. Edwards, who will be President and CEO of Nevada Bob's Golf Inc.
stated, ``We are entering a new and exciting era for the Nevada Bob's chain
and golf retailing in general. Concurrent with the merger we have addressed
the key elements which will enable Nevada Bob's Golf to become the most
respected and financially successful golf specialty retailer in the world.'
``First, we have developed a strategic plan which we believe will be
extremely successful. Second, we are arranging for sufficient financing which
will enable us to execute our plan. And last, but not least, all of the
employees of Nevada Bob's Golf recognize that our franchisees and vendors are
our partners in satisfying the needs of our customers and that we must treat
our customers, franchisees and vendors fairly and with the respect they
deserve.'
The strategic plan for Nevada Bob's Golf focuses primarily on aggressive
expansion of the Company's franchise system. The Company will concentrate its
efforts on providing support to its current franchisees and on selling
franchise territories rather than selling individual franchise locations.
Company owned locations will be used to enhance the franchise system and will
be developed and/or sold as deemed in the best interest of the system as a
whole.
In addition, the Company will commit significant resources to improve and
enhance E-commerce activities in an effort to make both Nevada Bob's Golf and
its franchisees industry leaders in the area of E-commerce. The Company is
vigorously exploring alternatives to achieve this objective.
Nevada Bob's Golf Inc.'s corporate offices will be located in Calgary,
Alberta, Canada. The Company's stock will continue to trade under the symbol
``NBC' on the Toronto Stock Exchange.
The Toronto Stock Exchange has neither approved nor disapproved of the
information contained in this release.
-0- 08/26/1999
For further information: Nevada Bob's Canada Inc., Mr. Lyle Edwards, President and CEO, (403) 294-0600, Fax: (403) 269-1715, Nevada Bob's Pro Shop, Inc., Mr. Tom Russell, President, (702) 451-3333, Fax: (702) 451-9378, GDH International, Inc., Mr. Marc Gunderson, CEO, (817) 801-1103, Fax: (817) 801-1974
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