EXTECH CORPORATION ENTERS INTO AGREEMENT WITH ROBESON INDUSTRIES CORP.
GARDEN CITY, N.Y., and SOUTH PLAINFIELD, N.J., Feb. 23 /PRNewswire/ -- EXTECH Corporation (OTC: EXTH) and Robeson Industries Corp. (OTC: RBSN) jointly announced today that they have entered into a definitive agreement pursuant to which EXTECH will provide financing to Robeson from time to time to March 1996 in the aggregate amount of $1,000,000, including interim financing which EXTECH has provided to Robeson since Dec. 15, 1992. Robeson is a manufacturer and marketer of household appliances and has developed a series of value-added accessories and combination kitchen appliance sets. EXTECH is a company in the hotel business which recently determined to enter the home appliance business. The agreement also provides for the parties to form two joint ventures which would undertake sales and marketing operations. The first joint venture will market a line of household appliances bearing the "Emerson" trademark under a license agreement being negotiated with Emerson Radio Corp., and the second joint venture will market household appliances under the "Robeson" name outside of the United States. Under the agreement, EXTECH will provide three-year financing to the first joint venture up to $1,000,000. The agreement further provides for Robeson to transfer to EXTECH its outstanding shares of Robeson Industries Hong Kong Ltd., the subsidiary which arranges for manufacture of Robeson products, and to issue to EXTECH 750,854 shares of Robeson common stock (approximately 16 percent of the issued and outstanding shares after issuance) at $.10 per share and a five-year warrant, exercisable commencing March 31, 1995, to purchase an additional 900,000 shares of Robeson common stock at $.50 per share subject to adjustment. The Hong Kong corporation will continue to provide sourcing, prototyping, administrative and shipping services for Robeson, and will provide such services for the two joint ventures, under operating agreements with those entities. In addition, EXTECH will provide management consulting services to Robeson under a consulting agreement during the period that EXTECH's loan to Robeson is outstanding. The consummation of the transaction is subject to a number of closing conditions, including, among other things, agreements with Robeson's creditors confirming previous settlement arrangements, and other conditions. The transaction is presently scheduled to close March 15, 1993. -0- 2/23/93 /CONTACT: Morton L. Certilman, president of EXTECH, 516-794-4300; or John J. Raab, president of Robeson, 908-756-2001/ (EXTH RBSN)
CO: EXTECH Corporation; Robeson Industries Corp. ST: New York, New Jersey IN: HOU SU: FNC
GK-SH -- NY072 -- 9532 02/23/93 15:26 EST
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|Date:||Feb 23, 1993|
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