Printer Friendly


 RAPID CITY, S.D., Aug. 19 /PRNewswire/ -- Magnum Resources, Inc. announced today that subscriptions and payments have been received and are currently being processed for the sale of all 19,000,000 shares of common stock offered by the company to its existing shareholders. As a result, the company will receive aggregate proceeds of $2,800,000. This was a rights offering and was extended exclusively to the company's existing shareholders. The company intends to use the proceeds from this rights offering to retire existing debt, provide funds to its subsidiaries and provide initial capital to a new subsidiary, Magnum Credit Corporation.
 The company also announced today that on Aug. 17, 1992, the company's shareholders approved a 1-for-3 reverse stock split. This reverse stock split became effective July 31, 1993.
 The company has completed a series of mergers and acquisitions, extensive product development and corporate financings.
 In February of 1991, Magnum acquired (by means of a subsidiary merger) Hydra-Mac, Inc., of Thief River Falls, Minn., and Hydra-Mac's subsidiary, D&E Machining, of Wahpeton, N.D.
 Hydra-Mac manufactures six models of four-wheeled skid steer loaders which can do a variety of jobs that are difficult to do manually but which large machines, such as tractors, bulldozers, and other construction equipment cannot do because of their size and lack of maneuverability. Prices on these units range from $17,000 to $32,000.
 D&E is a precision gear manufacturing firm. D&E supplies gears and machined parts to the company and its subsidiaries as well as many other manufacturing customers in the Midwest.
 In January of 1993, the company completed its acquisition of Power Equipment Corporation of Thief River Falls. Power Equipment is responsible for the development and manufacture of a new rubber tracked crawler loader under the name Commander(TM). Power Equipment originally marketed a variety of loaders and accessories, but in 1990 it assumed a new direction under the guidance of Douglas Steiger, of Steiger Tractor fame, and began development of this revolutionary new rubber tracked crawler.
 The Commander crawler, manufactured by Power Equipment, offers all of the characteristics of the skid steer loaders as well as having the advantages of a crawler. The rubber tracks have the traction only associated with conventional steer track crawlers, however the rubber track will not leave the heavy and sometimes damaging footprint. The combination of this skid steer maneuverability and crawler traction and stability has opened a variety of new markets for the company both domestic and foreign.
 The company currently produces three models of the Commander, the Model 4200, the Model 8000 and the Model 12000. Prices range from $18,000 to $55,000.
 Magnum Credit Corporation has engaged in the business of providing inventory financing to Hydra-Mac and Power Equipment, floor plan financing to the company's dealers and retail financing to the end users of the company's products.
 The company may elect to raise additional capital for Magnum Credit in the future, should this financing activity demonstrate significant profit potential for the company.
 The recently completed rights offering concludes a series of successful financings undertaken by the company. Between February and September of 1991, the company sold approximately 625,715 shares of its common stock to a limited number of accredited investors for $1.75 per share, raising nearly $1,100,000. In addition, from March 1992 through February 1993, the company sold approximately 286,800 units, consisting of one share of common stock and a warrant to purchase an additional share for $3.50, at a price of $2.50 per unit, raising an additional $717,000 for the company.
 Funds raised as a result of the three company financings combined with over $650,000 invested by the company's officers and directors currently meets and exceeds the $5,000,000 funding goal set by management.
 Having successfully completed its goals regarding mergers and acquisitions, product development and financing, the company intends to aggressively move forward into production and marketing.
 In accordance with the company's comprehensive business plan, management will now recruit and install a chief executive officer, whose primary responsibility will be that of overseeing and leading the company toward its increased production and marketing goals, which establishes $100,000,000 in sales as its 1997 year-end target.
 -0- 8/19/93
 /CONTACT: Jerry Kutil, CFO of Magnum Resources, 605-341-5660/

CO: Magnum Resources, Inc.; Hydra-Mac, Inc.; Power Equipment
 Corporation; Magnum Credit Corporation ST: South Dakota, Minnesota IN: SU: OFR

KH-DS -- MN004 -- 4445 08/19/93 15:41 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Aug 19, 1993

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