AMCON Distributing Company Settles Trinity Springs Litigation.CHICAGO -- AMCON Distributing Company ("AMCON") (AMEX AMEX See: American Stock Exchange :DIT), an Omaha, Nebraska “Omaha” redirects here. For other uses, see Omaha (disambiguation). Omaha is the largest city in the State of Nebraska, United States. It is the county seat of Douglas County.GR6 As of the 2000 census, the city had a population of 390,007. based consumer products company is pleased to announce that on September 30, 2007 it entered into a settlement agreement with Crystal Paradise Holdings, Inc. ("CPH") in connection with the purchase and litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. surrounding the assets at AMCON's Trinity Springs Inc. subsidiary. "We are delighted that this litigation process has come to a close. We appreciate the good faith effort made by all the parties to bring this to an amicable resolution. Now that we have put this litigation and the associated uncertainties in the past we can devote management's full resources and energy into growing AMCON's two core businesses," said Christopher Atayan, AMCON's Chief Executive Officer. CPH has been granted an eleven month option to purchase the assets of Trinity Springs Inc. from AMCON. Under the terms of the settlement, both parties have mutually released their litigation claims and AMCON will restructure and reduce its obligations originating from the 2004 purchase transaction; including the notes payable, the water royalty due to CPH and their minority interest in TSI TSI Total Solar Irradiance (sum solar light in energy per unit of time) TSI Trading Standards Institute (UK) TSI Transportation Safety Institute (US DOT) , into a $5.0 million note due in five years with interest accruing at 5%. The eleven month purchase option has been granted to CPH for a price equivalent to the amount of the $5.0 million note plus accrued interest Accrued Interest The interest that has accumulated on a bond since the last interest payment up to but not including the settlement date. There are two methods for calculating accrued interest: 1) 360-day year method, used for corporate and municipal bonds. . The purchase option can also be extended an additional seven months. "This litigation has been a large component of our legal expense and we expect to realize considerable legal cost savings as a result of this settlement," said Andrew Plummer
AMCON is a leading wholesale distributor of consumer products, including beverages, candy, tobacco, groceries, food service, frozen and chilled foods, and health and beauty care products with distribution centers in Illinois, Missouri, Nebraska, North Dakota North Dakota, state in the N central United States. It is bordered by Minnesota, across the Red River of the North (E), South Dakota (S), Montana (W), and the Canadian provinces of Saskatchewan and Manitoba (N). and South Dakota. Chamberlin's Natural Foods, Inc. and Health Food Associates, Inc., both wholly-owned subsidiaries of The Healthy Edge, Inc., operate health and natural product retail stores in central Florida (6), Kansas, Missouri, Nebraska and Oklahoma (4). The retail stores operate under the names Chamberlin's Market & Cafe and Akins Natural Foods Market. This news release contains forward-looking statements that are subject to risks and uncertainties and which reflect management's current beliefs and estimates of future economic circumstances, industry conditions, Company performance and financial results. A number of factors could affect the future results of the Company and could cause those results to differ materially from those expressed in the Company's forward-looking statements including, without limitation, availability of sufficient cash resources to conduct its business and meet its capital expenditures needs. Moreover, past financial performance should not be considered a reliable indicator of future performance. Accordingly, the Company claims the protection of the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. for forward-looking statements contained in the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995 with respect to all such forward-looking statements. Visit AMCON Distributing Company's web site at: www.amcon.com |
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