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HARVARD CAPITAL CORP. ANNOUNCES APPOINTMENT OF NEW DIRECTORS AND OFFICERS

 HARVARD CAPITAL CORP. ANNOUNCES APPOINTMENT
 OF NEW DIRECTORS AND OFFICERS
 VANCOUVER, British Columbia, June 12 /PRNewswire/ -- Harvard Capital Corp. (Vancouver: HCC) announced the restructuring of its board of directors and the appointment of new officers. John Turner, P.C., of Toronto, has been appointed chairman of the board of directors and Edgar F. Kaiser Jr. has been appointed a director and chairman of the executive committee. Robert Annable, a prominent West Coast businessman, has been appointed a director and chairman of the audit and compensation committees.
 Neil T. Balter of San Francisco has been appointed president, chief executive officer and a director of Harvard. Balter was the founder and chief executive officer of California Closet Co., the world's largest custom closet franchise organization. Robert W. Dunn, C.P.A., formerly vice president of operations and finance of California Closet Co., has been appointed senior vice president and chief financial officer of Harvard.
 Arthur Dalfen has resigned as chairman of the board, but remains a director of Harvard. Mel Appelbaum has resigned as president and chief executive officer, but will remain as a consultant to the company. Appelbaum and Aziz Shariff have resigned as directors.
 Harvard has granted, subject to acceptance by the Vancouver Stock Exchange, incentive stock options to new directors and employees entitling them to purchase a total of 510,000 common shares at $1.00 per share for two years.
 New Equity Financing
 With the support of its reconstituted board of directors and senior officers, Harvard has secured $2.4 million in new financing by the private placement of 3,000,000 units at $0.80 per unit. Each unit consists of one common share and a warrant to purchase one additional share at $1.00 for one year.
 Subscribers to the private placement are:
 Edgar F. Kaiser Jr. 862,500 units
 Neil T. Balter 450,000 units
 Ben A. Johnson 250,000 units
 Douglas L. Mason 200,000 units
 Altamira Special Growth Fund 187,500 units
 Gluskin Sheff & Associates Inc. 187,500 units
 Peripatetic Investments Ltd. 187,500 units
 Clements Capital Corp. 125,000 units
 PHT Securities (Barbados) Ltd. 125,000 units
 Samuel Belzberg 125,000 units
 Robert M. Friedland 125,000 units
 Robert G. Hunter 125,000 units
 Cyrus Driver 50,000 units
 Finder's fees and commissions, totalling $158,500, will be paid by Harvard on closing. This private placement is subject to acceptance for filing by the Vancouver Stock Exchange.
 Harvard has also received $188,000 from the exercise of options to purchase a total of 235,000 shares, at $0.80 per share, by Dalfen, as to 200,000 shares, and by Shariff, as to 35,000 shares.
 The total proceeds of $2,588,000 from the private placement and the exercise of stock options will be used to further develop Harvard's exclusive license to market, distribute, and operate a proprietary french fry vending machine in its exclusive territory.
 Acquisition of Worldwide Rights
 Harvard has concluded an agreement with Sedona Industries Ltd. expanding its exclusive marketing, distribution, and operating license for a proprietary french fry vending machine to encompass all countries of the world except Korea, Mexico and Central America. Harvard has also acquired an expanded and exclusive manufacturing license covering Europe, the former Soviet Union, Africa, Australia, Mexico, Central America and certain Asian countries. The new agreement will result in significant reductions in Harvard's potato mix and vending machine costs and also includes additional contingent rights to negotiate directly with proprietary potato mix manufacturers.
 Under its original agreement with Sedona, Harvard previously had acquired the exclusive license to manufacture, distribute and operate the vending machine in Canada, the United States, the Caribbean and South America.
 For the expanded license, Harvard will pay Sedona U.S. $167,500 and will issue 225,000 common shares at a deemed price of $1.00 per share. Harvard will issue additional shares to Sedona on June 3, 1994, to make up the amount, if any, by which the then current trading price of any of the 225,000 shares then held by Sedona is less than $5.00 per share.
 Sedona has advised that licenses previously granted for certain countries covered by the new agreement are no longer in good standing and can be terminated. Sedona has indemnified Harvard with respect to those licenses. Harvard may recover any indemnified damages by offset against future worldwide royalties payable to Sedona.
 Harvard's new agreement with Sedona is subject to acceptance for filing by the Vancouver Stock Exchange.
 Current Manufacturing Status
 Harvard was recently advised by Heung Yang Inc. and its affiliate, Nado Electronics, Inc., the Korean manufacturers of the french fry vending machine, that they are presently operating under the supervision of the Korean Corporate Reorganization Court. This voluntary operating arrangement, initiated by Heung Yang and Nado, permits them to carry to their normal business while retaining court protection for the orderly restructuring of their long-term indebtedness.
 Following recent on-site negotiations in Korea with the court appointed supervisors and manufacturers' representatives, Harvard's management team has concluded satisfactory arrangements for the timely delivery of its current order of 50 machines. Agreement was also secured for Harvard's engineering team, currently in Korea, to collaborate with the manufacturers on technical issues, monitor production, oversee testing and ensure delivery this summer.
 Based on assurances received in Korea, management remains confident that Nado's new manufacturing facilities in Ansan City, South Korea, will provide Harvard with a reliable long-term source of supply.
 Harvard said the appointment of its new directors and officers marks the beginning of a new phase in the company's growth.
 -0- 6/12/92
 /CONTACT: Robert Dunn, senior VP of Harvard Capital, 604-681-9211/
 (HCC.) CO: Harvard Capital Corp. ST: British Columbia IN: SU: PER


KJ -- LA007 -- 9542 06/12/92 09:01 EDT
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