Excelsior-Henderson Motorcycle Manufacturing Company Announces Letter of Intent On Sale of $4.5 Million Principal Amount Debentures.BELLE PLAINE Belle Plaine may refer to:
Excelsior-Henderson Motorcycle Excelsior-Henderson Motorcycle Company was founded by Dan Hanlon and Dave Hanlon (brothers) who secured the rights to the defunct Excelsior-Henderson trademark in 1994. The two brothers found a number of investors and built a state-of-the-art factory in Belle Plaine, Minnesota. Manufacturing Company (Nasdaq: BIGX) announced today that it has entered into a letter of intent with two large international institutional investors Institutional Investor A non-bank person or organization that trades securities in large enough share quantities or dollar amounts that they qualify for preferential treatment and lower commissions. for the sale by the Company of $4.5 million principal amount of 5% convertible debentures Convertible Debenture Any type of debenture that can be converted into some other security. Notes: For example, a convertible bond can be converted into stock. . The debentures are expected to be convertible into common stock of the Company at a defined conversion price (initially a 10% premium to the market price at the time of closing). The investors would also receive warrants to purchase an aggregate total of up to 1.25 million shares of the Company's common stock at a 25% premium to the market price at the time of closing. The parties anticipate that the Company will receive $2.25 million upon the closing of the transaction and will receive the remaining $2.25 million upon approval of the transaction by the shareholders of the Company and upon satisfaction of certain other conditions and covenants related to the operation of the Company's business. In addition, subject to shareholder approval, the Company and the investors have agreed to modify the terms of the Series D Preferred Stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. conversion price downward but still at a premium to the current market price of the Company's stock (approximately one-half of the Series D Preferred Stock will initially be adjusted to a conversion price of $5.00). The transaction is subject to completion of due diligence Research; analysis; your homework. This term has caught on in all industries, because it sounds so "wired." Who would want to do analysis or research when they can do due diligence. See wired. and the execution of a definitive agreement by the parties. The parties expect the transaction to close before November 1, 1999. Excelsior-Henderson Motorcycle Manufacturing Company designs, manufactures, markets and sells a proprietary brand of premium heavyweight American cruiser cruiser, large, fast, moderately armed warship, intermediate in type between the aircraft carrier and the destroyer. During World War II, battle cruisers operated as small battleships, combining in one vessel maximum qualities of gun caliber, armor protection, and motorcycles, as well as related parts, apparel and accessories branded with a name that evokes an authentic American motorcycling heritage and lifestyle. The Company distributes its products through a national dealer network. Excelsior-Henderson is one of only two authentic American motorcycle companies exclusively committed to the manufacture of motorcycles. For additional information, visit the Company's web site at www.excelsior-henderson.com. |
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