American Image Motor Acquires 3.3 Million Shares in a Non-Cash Exchange.SANTA CRUZ Santa Cruz, city, United States Santa Cruz (săn`tə kr  z), city (1990 pop. 49,040), seat of Santa Cruz co., W Calif., on the north shore of Monterey Bay; inc. 1866. , Calif.--(BUSINESS WIRE)--Dec. 3, 1997--American Image Motor Company Inc. (OTC OTCSee: Over-the-counter. OTC See over-the-counter market (OTC). BB:USMC), today announced it had acquired 3.3 million shares of its common stock, representing approximately 25 percent of the shares outstanding, from its former president in connection with the company's divestiture The breakup of AT&T. By federal court order, AT&T divested itself on January 1, 1984 of its 23 operating companies, which became known as the Regional Bell Operating Companies (RBOCs). of its retail shop in order to focus on its manufacturing operations Manufacturing operations concern the operation of a facility, as opposed to maintenance, supply and distribution, health, and safety, emergency response, human resources, security, information technology and other infrastructural support organizations. . As a result of the transaction, Joseph Delnegro has resigned as president and a director of American Image Motor Company Inc., and Paul Comesky has been appointed acting president and chief executive officer. The acquired shares will be held as treasury stock. The retail shop, renamed American Image Motor of Santa Cruz, has been appointed as a distributor of the company's motorcycles and accessories. Under the terms of the agreement, Delnegro has purchased the business, inventory and property and assumed the liabilities and other obligations of American Image Motor of Santa Cruz in consideration for 3,300,000 shares of American Image Motor Company Inc. "Divesting the retail shop will allow us to focus on building motorcycles and result in cost savings estimated at $26,000 per month beginning immediately, as well as eliminate the necessity to have significant amounts of capital tied-up in retail inventory. Both the company and its shareholders will benefit significantly by the reduction of approximately 25 percent of the outstanding shares," Comesky said. Comesky further announced that Don Desrosiers and Ray Whitehead whitehead /white·head/ (hwit´hed) 1. milium. 2. closed comedo. white·head n. 1. had joined the company, Desrosiers as director of motorcycle production and Whitehead as vice president of manufacturing. "We are extremely pleased to welcome both Don and Ray to the company. Don, a graduate of the Harley-Davidson PHD factory training program for engines, electrical systems, chassis and advanced troubleshooting, brings to American Image Motor nine years of experience in building, troubleshooting and designing motorcycles and high performance motorcycle engines A motorcycle engine is an engine found in a motorcycle, which serves to propel the motorcycle. The motor typically sits immediately under the fuel tank, in between and just forward of the rider's legs. . "Ray brings over 20 years experience in managing manufacturing firms including aerospace and commercial manufacturing systems as well as in-depth knowledge of defense and commercial quality control systems such as MIL-45208 and ISO (1) See ISO speed. (2) (International Organization for Standardization, Geneva, Switzerland, www.iso.ch) An organization that sets international standards, founded in 1946. The U.S. member body is ANSI. 9000," said Comesky. American Image Motor Company Inc. is a domestic manufacturer of a diversified line of high quality performance "V Twin" engine, heavyweight motorcycles which meet or exceed all U.S. Government standards. -0- This press release contains "forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. " within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements other than statements of historical facts included in this press release, including without limitation, statements relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the future cost savings associated with the divestiture transaction, are forward-looking statements. Although the company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove correct. Important factors that could cause actual results to differ materially from the company's expectations include the company's ability to realize the cost savings. CONTACT: American Image Motor Company Inc. Paul Comesky, 408/477-4450 |
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