Caribbean Cigar Company Announces Filing Report on Form 10-KSB; Forbearance Agreement with Finova Capital Corporation.MIAMI--(BUSINESS WIRE)--July 14, 1998--Caribbean Cigar Company (NASDAQ/CIGR) announced today that it has filed its report on Form 10-KSB with the Securities Exchange Commission for its fiscal year ended March 31, 1998. The Company also amended its Form 12b-25 to indicate that the Company needed additional time to accurately prepare its financial statements due to the proposed sale of its retail division. The Company's financial statements must be restated due to the Company's retail division being treated as discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. . The Company also announced that it has signed a Forbearance Agreement with Finova Capital Corporation ("Finova"), pursuant to which the Finova has agreed to continue to make loans and advances to the Company against eligible inventories pursuant to the terms of its existing letter of credit agreement to the maximum amount of $1.5 million. The Company has agreed to pay off the letter of credit in full not later than September 8, 1998. The obligation of Finova to continue to make loans and advances to the Company is subject to several continuing conditions, including verification of inventory counts and absence of future defaults. A copy of the Forbearance Agreement is filed as an Exhibit to the Company's report on Form 10-KSB. Certain statements in this release, including statements related to future obligations under the Finova line of credit are forward-looking. No assurance can be given that the Company will be able to find alternative financing to replace the Finova line of credit. If Finova elects to foreclose fore·close v. fore·closed, fore·clos·ing, fore·clos·es v.tr. 1. a. To deprive (a mortgagor) of the right to redeem mortgaged property, as when payments have not been made. b. on its security interest in Company assets, the Company would not be able to continue its operations, resulting in a total loss of investment by the Company's shareholders. Caribbean Cigar Company, headquartered in Miami, manufactures and/or distributes cigars produced in the Dominican Republic Dominican Republic (dəmĭn`ĭkən), republic (2005 est. pop. 8,950,000), 18,700 sq mi (48,442 sq km), West Indies, on the eastern two thirds of the island of Hispaniola. The capital and largest city is Santo Domingo. . The Company manufactures/distributes the following brands: Signature Collection (SC)(TM), Calle Ocho(TM), Free Cuba(TM), Celestino Vega(TM), Rum Runner Rum Runner may refer to:
n. pl. am·a·ret·tos An Italian liqueur flavored with almond. [Italian, diminutive of amaro, bitter, from Latin am . For information contact: Edward C. Williams, Chief Financial Officer, E-Mail Address See Internet address. e-mail address - electronic mail address : CIGR@mindspring.com or (305) 267-3911.
CONTACT: Caribbean Cigar Company, Miami
Edward C. Williams, Chief Financial Officer
(305) 267-3911
E-Mail Address: CIGR@mindspring.com
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