Araldica Wineries Acquires $5 million In Network Broadcast Time; Gears Up For Fall, 1997 TV Product Promotions.NEW ROCHELLE, N.Y.--(BUSINESS WIRE)--August 7, 1997--Araldica Wineries, LTD LTD 1 Laron-type dwarfism 2 Leukotriene D 3 Long-term depression, see there 4. Long-term disability announced today its purchase of a $5 million block of network broadcast time, which it plans to use this Fall to introduce its proprietary line of premium Italian specialty foods, known as "The Mediterranean Diet Mediterranean diet Nutrition A diet that differs by country, characterized by ↑ consumption of olive oil, complex carbohydrates, vegetables, ↓ red meat. See Diet, Mediterranean diet pyramid. Cf Affluent diet. Club", to American consumers. "Club Dieta Mediterranea, S.r.l.", of Pescara, Italy, recently purchased by Araldica, is a 10 year old distributor of unique specialty foods (primarily conventional Italian food products, which are grown naturally, and manufactured with little or no additives, chemicals or preservatives). Louis Contey, vice president of Araldica, commented that "We will be using this national broadcast time to air commercials, and an infomercial, to introduce this recently acquired branded name and product line, already known around the world for the past 10 years, to the United States consumer market. "The planned television exposure is expected to vastly expand our direct response reach, and allows Araldica to increase its asset base immediately by $5 million, which brings the company closer to its goal of filing for NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on listing before the end of 1997." The purchase was arranged through Access America Inc. a New Orleans television services company that sold the broadcast time to Araldica, for 2,000,000 of its common shares, valued in this transaction at $2.50 per share. Access America is also assisting Araldica with its commercial and infomercial production. Contey also added that "With our recent acquisitions, we are pleased with our current prospects for increasing shareholder value in the near term; we consider ourselves to be an undervalued company undervalued company A firm whose assets and potential earning power are not adequately reflected in its stock price. Although such firms are more likely to be subject to takeover attempts than others, determining whether a particular firm is actually , given our revised estimated earnings for 1997 of around $500,000." He continued, "With approximately eight million shares outstanding presently, and estimates of consolidated earnings per share in the range of six cents, even a relatively low multiple of 25 would produce a price in the $1.00 to $2.00 range. Our largest, publicly traded (wines by mail) competitor carries a multiple of 60, currently. Given our recent trading range Trading Range The spread between the high and low prices traded during a period of time. Notes: When a stock breaks through or falls below its trading range after several days of trading in a range, it usually means there is momentum (positive or negative) building. of around 50 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. , we believe Araldica to be an extremely good value at this time." Araldica Wineries LTD (NASD NASD See: National Association of Securities Dealers NASD See National Association of Securities Dealers (NASD). : BB-AWLT) is engaged in the nationwide marketing and distribution of premium Italian wines, olive oils and specialty foods, primarily via direct response promotions to targeted Italian-American consumers, a 20 million-plus niche market. The company's primary focus is its proprietary "Knights of Italy" wine series, which offers premium Italian wines, custom-labelled with the heraldic he·ral·dic adj. Of or relating to heralds or heraldry. he·ral  di·cal·ly adv.Adj. 1. crests associated with each Italian surname. -0- FOR ADDITIONAL INFORMATION: Please contact either Louis Contey, Vice President, or Edgar Arguello, Vice President, at the company: 914/636-0500. CONTACT: Araldica Wineries Louis Contey or Edgar Arguello, 914/636-0500 |
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