Advantage Marketing Systems Inc. acquires Chambre International Inc.
Chambre, a privately owned company headquartered in West Union, S.C., markets a line of cosmetics, skin care and hair care products with a 20-year reputation for quality. Their sales for the fourth quarter of 1996 were $131,000, compared to fourth quarter sales of $1,700,000 for AMS. Chambre has a growing international presence with 38% of their sales during this period coming from outside the United States.
"The addition of this quality line of cosmetics, skin care and hair care products to our outstanding line of nutritional supplements dramatically expands our product line and allows our distributors to capitalize on this important segment of the market," said Hail.
According to Janet Britt, president of Chambre: "The lack of capital has severely limited our rate of growth. AMS will provide us with the capability to develop our outstanding products and salespeople to their full potential. We also anticipate dramatic growth in our international sales."
The acquisition of Chambre adds 2,100 distributors to the AMS salesforce and gives AMS additional access to the international market. This gives AMS a salesforce of more than 16,000 independent distributors.
AMS is raising additional capital to fund its explosive growth. Through Sept. 30, 1996, its net income, total assets and stockholders' equity increased 317%, 218% and 862%, respectively.
For every share of AMS stock held on Jan. 31, 1997, AMS shareholders received the right to buy a unit consisting of one share of stock and one two-year warrant. AMS is also calling all of its outstanding "A" and "B" warrants and offering exercising warrantholders the same unit being offered to shareholders. Shareholders and warrantholders will have until March 17, 1997, to exercise their rights and warrants. Upon completion of these offerings, AMS plans to apply for a NASDAQ listing.
"As impressive as our growth has been over the past three years, it pales in comparison to what we expect for the next three years and beyond," said Hail.
The common stock and warrants of AMS are traded in the over-the-counter market on the electronic bulletin board under the symbols AMSO, AMSOW and AMSOZ.
CONTACT: Advantage Marketing Systems Inc., Oklahoma City
Curt Wilson or Roger Baresel, 405/842-0131
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|Date:||Feb 20, 1997|
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