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EQUITEX INVESTEE SIGNS LETTER OF INTENT FOR $30 MILLION FINANCING

 ENGLEWOOD, Colo., March 1 /PRNewswire/ -- Equitex Inc. (NASDAQ-NMS: EQTX) said today that its investee company, Roadmaster Industries Inc. (NASDAQ: WHEL), made the following announcement this morning:
 Englewood, Colorado . . . . Roadmaster Industries Inc. ("RMI" or
 the "company") (NASDAQ: WHEL) announced today that it had entered
 into a Letter of Intent with certain underwriters for a $30 million
 public offering of securities by the filing of a Registration
 Statement with the Securities and Exchange Commission.
 The Letter of Intent calls for the securities to be 10 year
 Convertible Subordinated Notes carrying an interest rate of
 8 percent and will be convertible into shares of the company's
 Common Stock at a price equivalent to between 120 percent and
 130 percent of the market price of a share of RMI's Common Stock on
 the effective date of the Registration Statement. The Notes will be
 redeemable by the company at their principal amount plus accrued but
 unpaid interest at any time commencing 24 months after the effective
 date subject to certain redemption requirements.
 The company said it will file with the Securities and Exchange
 Commission a Registration Statement on Form S-1 and complete the
 offering as soon as possible after the Registration Statement
 becomes effective. Part of the proceeds of the offering will be
 utilized to reduce the outstanding balances of certain term loans
 and revolving lines of credit of RMI's wholly owned subsidiary,
 Roadmaster Corp. The remaining proceeds will be utilized for the
 expansion and capital improvement of the company's business, for
 possible acquisitions of complimentary product lines or companies
 and other general corporate purposes.
 Roadmaster Industries operates through its two wholly owned
 subsidiaries, Roadmaster Corp. and Hamilton Lamp Corp. as well as
 its majority-owned subsidiary, International Sports and Fitness Inc.
 Roadmaster Corp. is a leading designer and manufacturer of
 Roadmaster junior wheel goods, Roadmaster bicycles and Vitamaster
 fitness equipment. Hamilton Lamp Corp. is a leading manufacturer of
 lamps and replacement shades. International Sports and Fitness Inc.
 through its wholly owned subsidiary, Roadmaster Leisure Inc.,
 markets and distributes a broad range of sporting goods and
 recreational products, including Roadmaster Corp. products, in
 Canada.
 Equitex Inc. is a business development company under the Investment Company Act of 1940, as amended, which owns approximately 20 percent of the common stock of Roadmaster Industries Inc.
 -0- 3/1/93
 /CONTACT: Thomas B. Olson of Equitex, 303-796-8940/
 (EQTX WHEL)


CO: Equitex Inc.; Roadmaster Industries Inc. ST: Colorado IN: SU:

MC -- DV003 -- 1222 03/01/93 08:47 EST
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Copyright 1993 Gale, Cengage Learning. All rights reserved.

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Publication:PR Newswire
Date:Mar 1, 1993
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