As of January 31, 1999, the Company was not in compliance with a
minimum tangible net worth covenant under a $3.0 million Canadian Dollar (U.S.
$2.0) line of credit agreement with the Royal Bank of Canada. The Company is in
discussions with the bank to obtain a waiver from the bank for the period of
time of its non-compliance with the covenant. In the event that non-compliance
is not cured or waived, the bank may exercise its rights to demand payment of
all amounts and/or foreclose on the Company's assets which are pledged as
collateral under the agreement which could also lead to cross-defaults under the
Company's other credit arrangements. In that event, there can be no assurance
that the Company will be able to continue as a going concern.
As part of the overall restructuring of the Company's capital
structure, the Company and its banks are continuing to discuss alternatives to
mitigate the Company's financial difficulties and the reinstatement or renewal
of the credit lines after March 31, 1999. There can be no assurance that
satisfactory agreements will be reached between the Company and current or
prospective providers of long term debt or equity financing.
The above is why the stock has been at Forty cents.
The $15M from Tecnica should change this.
General
Marker International ("Marker" or the "Company") is a leading designer,
developer, manufacturer and marketer of alpine ski bindings in the United States
and throughout the world. Marker International is a holding company which
operates its alpine ski binding business through its subsidiaries, Marker
Deutschland GmbH ("Marker Germany"), Marker USA, Marker Japan Co., Ltd. ("Marker
Japan"), Marker Austria GmbH ("Marker Austria") and Marker Canada, Ltd. ("Marker
Canada"). Substantially all of the Company's ski bindings are manufactured by
Marker Germany, which also distributes bindings in Germany, to subsidiaries of
the Company, and to independent distributors in countries where the Company does
not have a distribution subsidiary.
Marker Ltd., also a subsidiary of the Company, designs, distributes and
sells to retailers the Company's clothing, gloves and luggage products for
skiing and other recreational activities. The principal markets for the
Company's clothing, gloves and luggage products are North America, Europe and
Asia.
Ski Bindings
------------
The Company designs, develops, manufactures and distributes ski
bindings consisting of more than 25 high quality models. The models range from
high performance racing models, such as the Logic M9.1 Turbo SC RacingTM and
other top-end models featuring the Company's patented Selective Control
SystemTM, BiometricTM Programmed Upward Release and Comshock PistonTM, to the
children's M9 model. Suggested retail prices in the United States of such models
range from $120 to $395. Several models are available in a variety of colors
selected by the Company based on an analysis of consumer preferences.
In addition to a ski binding's primary function of attaching a ski to a
ski boot, the binding serves as a safety mechanism. The timing of a binding's
release mechanism is significant in both its retention and release functions.
When a skier applies an amount of force to a ski binding that exceeds the safety
setting of the binding, the binding is designed to release the ski boot from the
ski in order to decrease the risk of injury to the skier. Therefore, a binding
must be designed to recognize specific levels of force exerted against it.
Marker bindings feature LogicTM, BiometricTM, Edge Pressure SystemTM
and Gliding AFDTM technology. The Company's patented technology tightly couple
the ski boot and binding, resulting in a binding system that is designed not to
be affected by contamination between the ski boot and binding and provide more
power to the ski, less fatigue to the skier.
Soft Goods
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The Company designs, distributes and markets apparel for adults and
children, gloves and ski and non-ski luggage. The Company's clothing line
features quality, functional and versatile performance wear for year-round
sports and recreational activities available at a wide range of prices.
In October 1995, Marker Ltd. was selected by the Salt Lake Olympic
Organizing Committee for the 2002 Olympic Winter Games ("SLOC") as a licensee
for the sale of winter outerwear, polar fleece, luggage and gloves with the
imprint and embroidery of the 2002 Olympic Winter Games. In February 1996,
Marker Ltd. was selected as a licensee for sale of T-shirts, sweatshirts, golf
shirts and related apparel with the imprint and embroidery of the 2002 Olympic
Winter Games. In January 1998, both of these agreements were extended through
December 31, 1998.
The Company's apparel lines, gloves and luggage are sold year round to
retailers mainly in the United States through Marker |
