GolfGear International Inc. Announces Acquisition of Assets and Business of Bel Air Golf Companies
Don Anderson, president and founder of GolfGear International Inc., Huntington Beach (OTC BB:GEAR), Thursday announced that GolfGear has entered into an agreement to acquire all of the operating assets of Bel Air Golf Companies, including the “Bel Air Golf” and “Players Golf” tradenames.
The Bel Air Golf Companies were acquired by new management in 1997 and had consolidated unaudited revenues of approximately $2 million for the year ended Dec. 31, 1998. Players Golf offers a full line of junior golf clubs, and Bel Air Golf is known primarily for golf glove products that offer both value and quality. Bel Air Golf and Players Golf will be operated as a separate division of GolfGear.
GolfGear also issued 255,000 warrants exercisable at $1 per share for a period of six months from closing, and 100,000 warrants exercisable at $1 per share, 100,000 warrants exercisable at $2 per share and 100,000 warrants exercisable at $3 per share, vesting and exercisable only if net revenues from Bel Air Golf and Players Golf reach $1.5 million, $2 million and $2.5 million in 2000, 2001 and 2002, respectively.
This transaction is expected to close during late October or November 1999.
Commenting on the acquisition, Anderson stated: “We believe that the Bel Air Golf and Players Golf acquisition will have an immediate and substantial impact on GolfGear’s consolidated operations. Not only will it increase our revenue base substantially, it will also allow us to diversify our product lines and increase our penetration into new golf markets.”
Dennis Iden, president of the Bel Air Golf Companies, commented: “We are delighted to be a part of the GolfGear family. With the impressive marketing and product design and sourcing capabilities that GolfGear already has in place, we are confident that our brands will reach new levels of success under the leadership of Don Anderson.”
GolfGear was founded by Anderson in 1989, and offers a full line of proprietary golf equipment and accessories. GolfGear’s patent portfolio is the largest and most comprehensive in the golf industry. GolfGear’s products are sold principally in the United States and the Far East.
For additional information, contact Don Anderson at 800/955-6440 or 714/899-4274.
Forward-Looking Statements: This news release may contain forward-looking statements, which are made pursuant to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. Expressions of future goals and similar expressions reflecting something other than historical fact are intended to identify forward-looking statements, but are not the exclusive means of identifying such statements. These forward-looking statements involve a number of risks and uncertainties, including the timely development and market acceptance of new products and technologies, successful integration of acquisitions, the ability to secure additional sources of financing and competitive trends. The actual results that the company achieves may differ materially from any forward-looking statements due to such risks and uncertainties. The company undertakes no obligations to revise or update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this news release.
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