LOCK<------On may 27, 1998 LOCK terminates this super duper agreement,, remember this one..??Bear with me ..This gets really good...
May 27 1999 8:40
Agreement
And Cancels 1,000,000 Shares Of Common Stock
And 2,000,000 Warrants Issued Thereunder
Company Receives Funding Through Exercise of Warrants; Company Begins Selling
To Consumers Over the Internet
WEST PALM BEACH, Fla., May 27 /PRNewswire/ -- Saf T Lok Incorporated
(Nasdaq: LOCK) announced today that the Company and United Safety Action, Inc.
have terminated the February 11, 1998 Non-Exclusive Distribution and Pricing
Agreement pursuant to which United had the exclusive world-wide right to sell
Saf T Lok(R) products to wholesalers, retailers and end-users except for law
enforcement agencies, governmental entities, military organizations and gun
manufacturers. Under the terms of the termination agreement, Saf T Lok and
United exchanged mutual releases, and Saf T Lok was permitted to retain
1,000,000 shares of the Company's common stock that had been issued in the
name of United and pledged to the Company pending United's performance of its
obligation to advertise the Company's products. The Company will cancel such
shares and return them to authorized but unissued status. United was
permitted, however, to keep approximately 20,000 of the Company's gun locks
for which it had not made payment. Also in connection with the termination of the Distribution Agreement, Saf T Lok (i) repurchased for $.25 per warrant
2,000,000 warrants that it had previously issued (having an exercise price of
$5.00 per share); and (ii) terminated a related consulting agreement that
required the Company to pay a commission on orders placed pursuant to the
Distribution Agreement.
Saf T Lok's President and Chairman, Frank Brooks, explained that, "The
termination of the Distribution Agreement frees the Company to operate more
directly in the wholesale and retail markets at a time when public interest in
gun safety is on the rise. We are pleased that we were able to reach an
amicable resolution with United Safety Action and arrive at a deal that gives
us back the ability to market and sell our products, while canceling 1,000,000
shares and rights with respect to 2,000,000 additional shares."
In order to capitalize on the termination of the distribution agreement
and the recent publicity surrounding the company and its products, which have
been featured on ABC World News Tonight, NBC Nightly News, CBS Evening News
and CNN, Saf T Lok has opened an on-line store at Yahoo! so that its
combination gun locks can be purchased directly through the Company. The new
store address is st7.yahoo.com or customers can order by
telephone at 1-800-SAF-T-LOK. The Company believes that the Yahoo! store and
toll-free number will help the Company establish a retail market for its
products.
The Company also announced today the exercise of warrants (issued as part
of the Company's October 1997 private placement) to purchase 500,000 shares of
the Company's common stock at a price of $3.00 per share for gross proceeds of
$1,500,000, of which $195,000 was paid in placement and related fees. After
the payment of such fees and the repurchase of the 2,000,000 $5 Warrants, the
Company received net proceeds of $805,000. Mr. Brooks added that, "The
receipt of such funds should enhance our ability to develop a presence in the
wholesale, retail and governmental gun lock markets."
Mr. Brooks also noted that, "We are optimistic that the combination of the
termination of the United Distribution Agreement, the receipt of additional
funding by Saf T Lok and the nation's focus on gun safety will permit the
Company to meet its challenges for 1999."
Saf T Lok Incorporated is the manufacturer of the Saf T Lok(R) child
safety locks for handguns. Saf T Lok's patented combination gun locks for
revolvers and semi-automatic handguns become an integral part of the firearm
so there is nothing to remove, no keys or rings to find and no batteries to
fail. The "touch-sensitive" combination allows for operation of the lock --
even in the dark. Unlike trigger locks, which require guns to be unloaded,
the Saf T Lok gun locks attach to the grip or magazine of a handgun and blocks
the weapon internally so it cannot be fired, even if it is loaded and the
trigger pulled. Only someone who knows the combination can use the gun or
remove the lock.
Except for historical information, this press release contains forward-
looking statements concerning, among other things, future plans and operating
results. Such statements are based on the Company's current plans and expectations. Actual results could differ materially based upon a number of
factors, including, but not limited to, increased competition, dependence upon
key personnel, market acceptance of the Company's products, ability to raise
additional capital, and other factors described in the Company's periodic
reports filed with the Securities and Exchange Commission.
SOURCE Saf T Lok Incorporated
-0- 05/27/99
/CONTACT: Jacquie Cofer of Saf T Lok Incorporated, 561-478-5625, or |
