CEA LAB, Inc., is a public holding company that announced on January 6, 1997, that it signed a binding Letter of Intent to sell its Fifth Avenue Communications division to Auburn Equities, Inc. (OTC Bulletin Board: AEQS), for $1.5 million, with $250,000 payable in cash at closing and 1,250,000 restricted shares of Auburn Equities, Inc. CEA LAB, Inc., also owns Andros Island Hotel & Casino, Inc., a development-stage company that consists of 75-acres of prime, beachfront property on the Island of Andros, Bahamas. CEA LAB, Inc., has also contracted to purchase Rose Hill Golf Resort, Inc.
Cea Lab, Inc., To Spin-Off Gourmet's Choice Coffee Co., Inc., To Its Shareholders
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to Its Shareholders
WICHITA, Kan., Feb. 6 /PRNewswire/ -- CEA LAB, Inc., (OTC Bulletin Board: CEAL) announced today that the Company's Board of Directors intends to spin-off 100% of its wholly owned subsidiary, Gourmet's Choice Coffee Co., Inc., to its shareholders.
The Company said that it would distribute one share of common stock in Gourmet's Choice Coffee Co., Inc., to shareholders for each share of CEA LAB, Inc., common stock owned at March 14, 1997, and that it would issue the shares on March 31, 1997.
The Company has instructed its transfer agent, Securities Transfer Corporation, to mail the new Gourmet's Choice Coffee Co., Inc., shares to CEA LAB, Inc., shareholders directly. CEA LAB, Inc., shareholders owning stock in "street name" should see the shares posted their accounts within a short period after March 31, 1997.
Jeffery N. Young, President of CEA LAB, Inc., said, "Gourmet's Choice Coffee Co., Inc., owns the rights, trademarks, and service marks to Gourmet's Choice coffee and other premium coffee blends. These rights, including the special blend recipe of Gourmet's Choice, were acquired from Mr. Martin Lasher, who, from 1960, until 1983, operated S & S Coffee Roasters, Inc., the creator of the unique gourmet blend of Gourmet's Choice."
"Gourmet's Choice was served exclusively on several major airlines and in leading hotels and gourmet specialty shops and restaurants, including Pan American World Airways, Delta Air Lines, Inc., Bloomingdale's, Neiman-Marcus, The Hotel Pierre of New York. In 1983, the Company was completely destroyed in a devastating fire that engulfed its entire 6-story building, plant, and roasting facilities. Mr. Lasher, as the Company's Master Coffee-Blender traveled internationally to personally select and experiment with various coffee beans, finally creating a unique gourmet blend of rich, aromatic coffee of superior taste and quality."
Mr. Young continued, "It is our goal to resurrect this once-thriving business to again create the fine gourmet blend enjoyed by discriminating coffee lovers in years past. Our plan is to attempt to raise $1 million through a public offering to resurrect, recreate, and market Gourmet's Choice, as it was, 'unconditionally guaranteed the world's finest coffee.' Mr. Lasher will be working with us exclusively to blend and capture the originality of Gourmet's Choice. We plan to create the world's most exclusive and expensive coffee blend. With the advent and popularity of so many coffee flavors today, we feel that the discriminating coffee-buyer will appreciate real gourmet coffee produced to compete with Jamaican Blue Mountain and other premium blends."
"We think that our CEA LAB, Inc., shareholders will appreciate the distribution of Gourmet's Choice Coffee Co., Inc., shares and that they will also buy stock in the new company in the proposed public offering. CEA LAB, Inc.. shareholders will be given priority in the offering. Interested investors should contact us at 800-992-6616, to obtain an offering document and subscription agreement."
CEA LAB, Inc., is a public holding company that announced on January 6, 1997, that it signed a binding Letter of Intent to sell its Fifth Avenue Communications division to Auburn Equities, Inc. (OTC Bulletin Board: AEQS), for $1.5 million, with $250,000 payable in cash at closing and 1,250,000 restricted shares of Auburn Equities, Inc. CEA LAB, Inc., also owns Andros Island Hotel & Casino, Inc., a development-stage company that consists of 75-acres of prime, beachfront property on the Island of Andros, Bahamas. CEA LAB, Inc., has also contracted to purchase Rose Hill Golf Resort, Inc.
SOURCE CEA LAB, Inc.
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