Aviation General, Incorporated Announces Strategic Corporate Initiatives.Business Editors BETHANY, Okla.--(BUSINESS WIRE)--Sept. 6, 2001 Aviation General, Incorporated (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 :AVGE AVGE Advanced Video Guidance Sensor ) announced that its Board of Directors has authorized the following strategic corporate initiatives: an exchange offer, a 1-for-3 reverse stock split, and the reactivation reactivation to become active after a period of quiescence or, as in bacterial and viral infections, latency. cross reactivation of its Stock Repurchase Stock repurchase A firm's repurchase of outstanding shares of its common stock. Program. The Company also plans to seek additional capital through the private placement of a significant ownership interest and/or merger with a strategic partner, predicated on an appropriate corporate valuation. Under the exchange offer, Aviation General's shareholders can exchange one share of common stock for $1 principal amount of debentures. The debentures will bear interest at 8% per year, payable semi-annually each June 30 and December 31, starting on December 31, 2001. The principal amount of the debentures will be due on December 31, 2003, subject to prepayment at the company's option, without penalty or premium. The commencement and expiration dates Expiration Date The day on which an options or futures contract is no longer valid and, therefore, ceases to exist. Notes: The expiration date for all listed stock options in the U.S. of the exchange offer will be announced when the Company commences the offer and files a tender offer statement with the SEC. Following the completion of the exchange offer, the Company plans to effect a reverse stock split of 1-for-3 shares. The Company believes that the consummation of the exchange offer and reverse stock split will significantly reduce the Company's float of freely tradable shares and satisfy Nasdaq minimum bid requirements. The Company currently has approximately 6.5 million shares issued and outstanding, of which the float of publicly tradable shares is approximately 5 million shares. The Company also plans to seek additional capital through the private placement of a significant ownership interest and/or merger with a strategic partner, predicated on an appropriate corporate valuation. The Board of Directors has also authorized the reactivation of the Company's Stock Repurchase Program. Aviation General believes its stock is significantly undervalued Undervalued A stock or other security that is trading below its true value. Notes: The difficulty is knowing what the "true" value actually is. Analysts will usually recommend an undervalued stock with a strong buy rating. , having closed yesterday at less than one third of its book value at June 30, 2001. Furthermore, the Company believes that its FAA Commander Type Certificates alone are worth more than 20 times its market capitalization Market Capitalization A measure of a public company's size. Market capitalization is the total dollar value of all outstanding shares. It's calculated by multiplying the number of shares times the current market price. This term is often referred to as market cap. , as it takes a minimum of $50 million to $100 million of investment, and three to five years to design, prototype, test, and receive FAA Type Certification, irrespective of irrespective of prep. Without consideration of; regardless of. irrespective of preposition despite the additional investment required to establish and commence manufacturing, service, sales, and support activities. The Company believes it is positioned to significantly increase sales of its newly manufactured single engine high performance Commander aircraft, as lower interest rates, which significantly lower aircraft purchase finance costs, take effect and the overall economy improves. Commander is also well positioned to gain market share for several reasons, including the continuing building of its reputation for excellence, and the recent demise of one of its four competitors, which is no longer producing aircraft and which had more than 25% market share of new single engine high performance aircraft sales last year. The Company also plans to increase its brokerage, refurbishment re·fur·bish tr.v. re·fur·bished, re·fur·bish·ing, re·fur·bish·es To make clean, bright, or fresh again; renovate. re·fur , parts, service and support capabilities for all types of new and pre-owned high performance piston aircraft, as well as jet aircraft through its wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. , Strategic Jet Services, Inc. Aviation General, Incorporated is a publicly traded holding company with two wholly owned subsidiaries, Commander Aircraft Company and Strategic Jet Services, Inc. Commander Aircraft Company (www.commanderair.com) manufactures, markets and provides support services support services Psychology Non-health care-related ancillary services–eg, transportation, financial aid, support groups, homemaker services, respite services, and other services for its line of single engine, high performance Commander aircraft, and consulting, brokerage and refurbishment services for all types of piston aircraft. Strategic Jet Services, Inc. (www.strategicjet.com) provides consulting, sales, brokerage, acquisition, and refurbishment services for jet aircraft. All investors are advised to carefully read the tender offer statement when it becomes available because of the important information it contains. When the tender offer statement is filed with the SEC, it and other filed reports may be obtained for free by accessing over the Internet the Security and Exchange Commission's site on the World Wide Web at http://www.sec.gov. Investors may also contact the Company directly at 202/965-0777 to obtain free copies of the Offering Circular Offering Circular An abbreviated prospectus for a new security listing. Delivered to individuals and brokerage houses, these documents are issued to arouse interest in the new issue. Notes: An offering circular allows investors to access information regarding a new issue. and related documents to be utilized in the exchange offer. The statements in this press release that relate to future plans, events or performance are 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. that involve risks and uncertainties. Actual results, events and performance may differ materially. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The Company undertakes no obligation to release publicly the result of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. Readers are encouraged to refer to the risk disclosures described in the Company's reports on Forms 10-K, 10-Q and 8K, as applicable. www.aviationgeneral.com |
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