RM Investors, Inc., Announces Acquisition of Regional Produce Distributor
Changes name and management, authorizes forward stock split
HEYBURN, Idaho, Mar 15, 2014 (BUSINESS WIRE) -- RM Investors, Inc. ("RMII"), announced today that it had agreed to acquire 20/20 Produce Sales, Inc., a regional produce distributor based in Heyburn, Idaho. 20/20 Produce Sales, Inc. had net sales of $15.9 million and a net profit of $0.4 million for the year ended December 31, 2013.
RMII agreed to issue 4,836,000 shares of RMII stock to acquire 20/20 as a wholly owned subsidiary. Upon the completion of the acquisition, RMII will have 6,076,000 shares of common stock issued and outstanding. Prior to the acquisition, the shareholders of 20/20 and a third person purchased an aggregate of 832,400 shares from principal stockholders of RMII. As a result of these transactions, the former stockholders of 20/20 now own an aggregate of 5,468,400 shares, or approximately 90%, of the 6,076,000 shares of RMII outstanding. Approximately 340,000 shares remain in the hands of RMII's public stockholders, and 67,600 shares are retained by former RMII management.
In connection with the acquisition of 20/20, its directors and shareholders were elected as directors and officers of RMII. The new Board of Directors consists of Mark D. Williams, Robert T. Williams, Tom Wason, and Colin Gibson. The Board also approved changing the name of the company to 20/20 Global, Inc. The company will announce a new stock symbol reflecting the new name at a later date.
The new Board has also approved a 2-for-1 forward stock split of the 6,076,000 issued and outstanding shares of common stock to increase the outstanding stock to 12,152,000 shares. The record and effective dates of the forward stock split will be announced when they are determined.
About 20/20 Produce Sales, Inc. 20/20 Produce Sales, Inc. ("20/20"), was founded in 1993 to provide Idaho potato farmers the opportunity to collectively market their product. 20/20 provides year-round apple, onion, and potato supplies shipping from 15 separate shipping facilities. 20/20's growing partners use the latest, cutting-edge technology, which includes drip irrigation, in-house forced air-drying, automated packing line and palletization, and advanced sizing and grading equipment. 20/20 is a Blue Book Trading member. Additional information about 20/20 Produce Sales, Inc., is available at: www.2020produce.com.
Forward Looking Statements. Statements made in this news release that relate to future plans, events, or performances are forward-looking statements. Any statements containing words such as "believes," "should," "anticipates," "plans," or "expects," as well as other statements, are forward-looking, and those statements involve risks and uncertainties outside of the control of management and are based on current expectations. Consequently, actual results could differ materially from the expectations expressed in these forward-looking statements.
RM Investors, Inc. stock trades on the OTC: RMII
SOURCE: RM Investors, Inc.