Veltex Signs Letter of Intent to Acquire 50% of John Daly Enterprises
CITY OF INDUSTRY, Calif., June 16 /PRNewswire-FirstCall/ -- Veltex Corporation, (OTC: VLXC) a vertical manufacturing, import and distribution company for apparel and accessories, announced today that it had signed a Letter of Intent to acquire 50% of John Daly Enterprises worldwide (excluding the U.S.). Veltex will have licensing rights to John Daly's branded products and, upon conclusion of the Letter of Intent, expects to immediately expand its global distribution footprint by licensing, distributing, and marketing Daly's golf products and non-golf novelty products in Australia, Japan, Germany, Canada, England, South Africa, Switzerland, Denmark, Sweden, Norway and other countries.
John Daly is a very popular and respected professional golfer, having been named the 1990 PGA Tour Rookie of the Year, becoming the youngest active player on the PGA tour with two major championship titles and only the fourth American to win two majors before his 30th birthday. He is world renowned for his unparalleled power off the tee and is nicknamed "The Lion" by his many friends.
John Daly Enterprises sells a variety of "Lion" brand golf products; including men's and women's golf apparel, golf accessories, and golf memorabilia, as well as an assortment of non-golf novelty products. John is an innovator in direct golf merchandising and one of the most beloved and widely recognized PGA golfers.
The golf apparel and related products industry is huge and the sport keeps gathering more fans and players each year. Today, there are a total of 30,730 golf courses in 119 countries and 57 million golfers, representing a very large and lucrative opportunity for Veltex's expansion into golf merchandising.
Javeed Matin, CEO of Veltex Corporation, stated, "We are very excited about marketing John Daly's high quality line of apparel, shoes, golf bags, gloves and brand-name sunglasses throughout the world. We hope to conclude this transaction in the near future and commence our distribution activities. This will open up many new marketing avenues, add numerous new distributors, and rapidly accelerate Veltex's presence throughout the world. With the enormous global growth of the golfing industry, and Mr. Daly's popularity and credibility amongst his many fans, we feel this transaction would add virtually unlimited growth potential for our company!"
Benji Falkenstein, Vice-President of Marketing for Veltex Canada, commented, "We are ready to take our high-quality, branded products to the world! This transaction would obviously be extremely beneficial to our overall growth plans and corporate profitability."
Veltex currently has approximately ten million shares outstanding and forecasts that 2005 total revenues will exceed $60 million with net earnings easily surpassing $1.00 per share.
On June 1, 2005 Veltex acquired the Promotional Products Division of Explorer Headgear, www.explorergear.com, which was renamed "Veltex Canada". DBA Veltex -Explorer. Veltex Corporation is now rapidly expanding its international reach and is looking for further synergistic acquisitions to complement its aggressive global growth objectives.
Veltex Corporation is a vertical manufacturing, import and distribution company composed of four divisions: Veltex Apparel, specializing in caps, apparel and apparel accessories for the Promotional Products Industry and distribution of merchandise in the U.S. market; Veltex Explorer, Inc. (Explorer Headgear), a manufacturing, import and distribution company for the Promotional Products Industry in Canada; Velvet Textile Mills, specializing in the manufacture of high quality fabrics including velvets, 100% cotton twill, denim, sheeting for consumer and industrial products; and KCA Garment Industries, specializing in the manufacture of garments.
Safe Harbor: Except for historical information contained herein, the statements in this Press Release are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties, which may cause the Company's actual results in future periods to differ materially from forecasted results. These risks and uncertainties include, among other things, volatility of market prices, product demand, market competition, risks inherent in the Company's international operations, and the Company's ability to replace and expand.
URL: http://www.veltexcorp.com/ or http://www.veltexapparel.com/ or http://www.explorergear.com
© 2005 PRNewswire
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