Printer Friendly

ROBESON INDUSTRIES ARRANGING $1.6M FINANCING FROM EXTEC CORPORATION

ROBESON INDUSTRIES ARRANGING $1.6M FINANCING FROM EXTEC CORPORATION
 PLAINFIELD, N.J., Sept. 21 /PRNewswire/ -- Robeson Industries Corp. (OTC: RBSN), a marketer of household appliances and accessories, announced that it has entered into a letter of intent to obtain financing from EXTECH Corporation (OTC: EXTH), which from time to time would supply up to $1.6 million.
 "Upon completion, this financing would allow us to reduce debt and gain financial strength to qualify as a supplier to major home improvement chains with whom we are currently in negotiations," said John Raab, president of Robeson.
 The letter of intent also contemplates the execution of a consulting agreement pursuant to which EXTECH would provide management consulting services during the period the loan is outstanding. In consideration of the loan, at the initial funding, Robeson is to issue to EXTECH an option for the purchase of up to 850,000 shares of Robeson common stock (approximately 25 percent of the currently issued and outstanding shares). The option would be exercisable during the four year period commencing 18 months from issuance.
 At the initial funding, Robeson is also to increase the size of its board of directors and executive committee, so the EXTECH designees would constitute one-half of the members thereof. Such appointments are to continue until the later of the date the loan is fully repaid or 18 months from initial funding.
 Consummation of the transaction is subject to a number of conditions, including the negotiation and execution of a mutually acceptable definitive agreement.
 The common shares of both Robeson and EXTECH are listed on the NASDAQ OTC Bulletin Board.
 Robeson is a leading manufacturer and marketer of household appliances which has developed a series of value added accessories and combination kitchen appliance sets.
 -0- 9/21/92
 /CONTACT: John Raab, president of Robeson Industries Corp, 908-756-2001, or Stan Froelich of Cameron Associates, 212-644-9560, for Robeson Industries/
 (RBSN EXTH) CO: Robeson Industries Corp. ST: New Jersey IN: HOU SU: FNC


SH-AH -- NY001 -- 1456 09/21/92 08:00 EDT
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Sep 21, 1992
Words:336
Previous Article:STATE MUTUAL INTRODUCES NEW IDENTITY: ALLMERICA FINANCIAL
Next Article:SANTA SENDS CHILDREN OFF TO THE POLLS; KIDS CAST VOTES TO SELECT BEST NEW TOYS IN TOY DECISION '92
Topics:


Related Articles
ROBESON REPORTS PROFITS FOR FISCAL 1991
ROBESON REPORTS PROFITS FOR SECOND QUARTER AND FIRST HALF
ROBESON REPORTS SIGNIFICANT NET INCOME INCREASE FOR NINE MONTHS
ROBESON INDUSTRIES REPORTS RECORD NET INCOME FOR FIRST QUARTER OF 1992
ROBESON INDUSTRIES REPORTS PROFITABLE THIRD QUARTER
EXTECH CORPORATION ENTERS INTO AGREEMENT WITH ROBESON INDUSTRIES CORP.
ROBESON INDUSTRIES CORPORATION FILES FOR CHAPTER 11 PROTECTION
BANKRUPTCY COURT APPROVES FACTORING AGREEMENT WITH ACCESS CAPITAL, AND FINANCING ARRANGEMENTS WITH ACTIVE INVESTORS II AND JOSEPH YUAN
ROBESON INDUSTRIES CORP. RECEIVES ADDITIONAL FUNDING
ROBESON PLAN OF REORGANIZATION APPROVED BY THE COURT

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters