Butler National Corp. agrees to sell some of the intangible assets of its food distribution segment to a former officer.OLATHE, Kan.--(BUSINESS WIRE)--June 26, 1997--Butler National Corp. completed its April 30, 1997, agreement to sell certain intangible assets Intangible Asset An asset that is not physical in nature. Notes: Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. of its food distribution segment to Marvin J. Eisenbath, former president of RF Inc. The company has not disclosed the specific terms of the transaction, but has accepted all of the shares of Butler National Corp. common stock beneficially owned by Eisenbath and other economic consideration as payment for the intangible assets. In addition, Eisenbath has agreed to dismiss all 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. against the company. As announced by the company on June 11, 1997, the food distribution segment, including RF Inc. (Redi-Foods) and Valu Foods Inc. (Valu Foods), continues to operate in Kansas City Kansas City, two adjacent cities of the same name, one (1990 pop. 149,767), seat of Wyandotte co., NE Kansas (inc. 1859), the other (1990 pop. 435,146), Clay, Jackson, and Platte counties, NW Mo. (inc. 1850). and St. Louis under the direction of Joseph C. Johnston, president. The company plans to concentrate on the normal operation of RF Inc., and the expansion of the Valu Foods concept of selling high-quality food products through retail outlets located in smaller communities. Management Comments: "We are pleased to have negotiated a mutually satisfactory resolution of our disagreement with Mr. Eisenbath. We are looking forward to the continued operation of Redi-Foods and the expansion of the Valu Foods concept," commented Clark D. Stewart, president of the company. Forward-Looking Information: The information set forth above may include "forward-looking" information as outlined in the recently enacted 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. The Cautionary Statements, filed by the company as Exhibit 99 to the company's annual report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. , are incorporated herein by reference and you are specifically referred to such Cautionary Statements for a discussion of factors which could affect the company's operations and 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. contained herein. Our Business: Butler National Corp. operates in the aerospace and services business segments. The services segment includes food distribution, electronic monitoring of water pumping The pumping of water is a basic and practical technique, far more practical than scooping it up with one's hands or lifting it in a hand-held bucket. This is true whether the water is drawn from a fresh source, moved to a needed location, purified, or used for irrigation, washing, or stations, temporary employee services, Indian gaming management services and administrative management services. Aerospace includes the manufacture of airborne electronic switching equipment for McDonnell Douglas McDonnell Douglas was a major American aerospace manufacturer and defense contractor, producing a number of famous commercial and military aircraft. It merged with Boeing in 1997 to form The Boeing Company. and structural modification of business aircraft. For more information, or for a complete copy of Butler National's latest 10-Q, contact the individual listed below. CONTACT: Butler National Corp. Edward J. Matukewicz, 913/780-9595 fax, 913/780-5088 |
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