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VSYN sleeper.
Valentec Systems Signs Term Sheet to Acquire Mast Technology for $12 Million
PR Newswire "US Press Releases "
MINDEN, La., Jan. 22 /PRNewswire-FirstCall/ -- Valentec Systems, Inc. (OTC Bulletin Board: VSYN.OB), a supplier of mission-critical conventional ammunition, pyrotechnic and related defense products, announced today that it has signed a binding term sheet (the "Term Sheet") to acquire Mast Technology, Inc. ("MAST"), a Missouri based company specializing in the manufacturing of ammunition and ordnance for the United States Government.
The structure of the transaction has not yet been finalized, though terms between both parties have been reached. The Company has agreed to acquire MAST for an aggregate consideration of $12 million, of which $9 million will be paid in cash, $1.5 million will be paid through the issuance of Valentec common shares and the remaining $1.5 million will be held by Valentec and released in cash to MAST shareholders in accordance with a three-year earn-out. For specific terms of the agreement, please refer to the Company's Form 8-K on file with the Securities and Exchange Commission.
"We are extremely pleased to reach this important milestone after many months of discussion with MAST shareholders," said Robert A. Zummo, Chairman, President and CEO of Valentec. "The synergies between our companies should yield significant cost savings and result in a dramatic increase in both revenues and profitability. Additionally, by adding MAST's product lines, manufacturing and engineering capabilities and highly qualified and experienced personnel to our team, we strengthen all facets of our business and position our company for greater success in the years ahead."
Founded in 1990, MAST Technology, Inc. is a manufacturer of ammunition and ordnance for the United States Government and other customers. The Company specializes in tight propellant charge tolerances and produces 40mm training practice rounds, igniters for demolitions and training and other specialty ammunition products. MAST is headquartered and has operations and production facilities in Independence, Missouri. The Company is ISO-9000 certified, has approximately 115 employees and anticipates 2006 sales of approximately $17 million.
Zummo continued, "This acquisition is also synergistic in that we currently sell, to many of the same customers and believe we can offer a more complete solution to meet the growing needs of the U.S. Government and military forces. We expect the combined entity to have approximately $40-$45 million in sales in the coming year and potentially higher as we look to build our core product portfolio."
The Company announced today that as part of the agreement, Gerald Pickens, President and CEO of MAST will join Valentec Systems as Chief Operating Officer. Mr. Pickens has enjoyed a 35+year career in the defense sector, working in the areas of manufacturing, product development, operations, logistics, quality control and finance. Before his appointment to President of CEO of MAST, he served as Director of Operations and prior to, was Operations Manager at Day and Zimmerman, Inc. Mr. Pickens is a member of the National Management Association, American Management Association and National Defense Industrial Association and received a Bachelors of Science (B.S.) from Sam Houston State University.
Additionally, the Company disclosed that Jay Bell, formerly Vice President of Sales and Marketing has been appointed President of MAST Technology, a position he will assume upon closing of the transaction. Mr. Bell had previously served as President and CEO from 1999-2004 before taking on sales and marketing responsibilities when Gerald Pickens was appointed to that role. Mr. Bell is active in a number of defense, operations and financial institutions and is a member of the NDIA Small Arms Committee. He holds a Bachelors of Arts (B.A.) from the University of Southern California.
The Company anticipates that this transaction will close within 120 days, though there can be no assurances. If no definitive agreement is executed within such 120 day period, the parties' obligations under the term sheet will automatically expire unless otherwise extended by mutual written agreement.
Mallon & Associates and Carter Investments served as financial advisors to Valentec Systems, Inc. on this transaction.
About Valentec Systems, Inc.
Valentec Systems, Inc., headquartered in Minden, LA is a supplier of mission-critical conventional ammunition, pyrotechnic and related defense products. The company markets its products to the United States Army, Israeli Defense Forces and other Ministries of Defense in friendly nations around the world. Valentec's business lines can be classified in three distinct segments including Systems Management / Integration, Energetic Manufacturing and Metal Parts Manufacturing. For more information on the Company, please visit our website, http://www.valentec.net or our most recent filings with the Securities and Exchange Commission (SEC).
LDHI did good. VSYN is a mini-FRPT in the making. Doubt it goes that high buy Govt work for munitions be big biz right now.
I am in for a small chunk. This is a mini-FRPT in the making.
Top 10 kool-Aid reads this morning. Sorry BB you still don't count.
1 Franchise Capital Corp. (FCCN) 15525
2 Ifinix Corporation (INXR) 7438
3 U. S. Sustainable Energy Corp (USSE) 5572
4 PAYPRO INC (PYPR) 4882
5 CyberKey Solutions (CKYS) 4114
6 XECHEM INTERNATIONAL, INC (XKEM) 3869
7 BB's Penny Haven 3268
8 Sulja Bros. Building Supplies, Ltd (SLJB) 2757
9 ERHC Energy Inc. (ERHE) 2302
10 Blackout Media Corp (BKMP) 2213
11 Aurus Corp. (AURC) 2060
Almost as hard as SA. The guy is just now starting the second coat of paint in my garage.
Thanks for the charts Tony!
Thats funny! I thought MD 20/20 was his drink.
fur sure
Thats means he is painting my garage.
Love the commandments Lobster!
Are they done printing paper yet? PYPR could have really moved with the monsterous volume it was getting but it barely moved. Will keep an eye this time, again.
Have a good weekend all.
nice trade.
EXCS doing well off that Kawasaki news.
That is 7 months old. Hopefully all done by now.
SIRI dancing a little pre-market
Execute Enters Into Agreement With Kawasaki Motors Corp.
Friday January 19, 7:00 am ET
SAN DIEGO, Jan. 19, 2007 (PRIME NEWSWIRE) -- Execute Sports (OTC BB:EXCS.OB - News) has entered into an agreement with Kawasaki Motors Corp. to design and produce a test line of Jet Ski(r) products for 2007. The line will consist of Lycra Rash Guards, Neoprene Boots and a Metalite Top.
Celeste Berouty, President of Execute Sports, commented, ``This is a wonderful opportunity for our company to produce items for one of the leaders in the action sports industry.' Berouty further commented, ``We think that this year's test line with Kawasaki Motors Corp. could grow and become a very profitable addition to their overall sales.'
The new line of products will be delivered in March and available soon thereafter.
About Execute Sports, Inc.
Based in San Clemente, California, Execute Sports, Inc. develops performance products including wetsuits, vests, rash guards and wakeskates, for the action sports industry. The Company's brands include Execute Wetsuits, Kampus Wakeskates and Kampus Shoes, Collective Development Bindings and Collective Development Bags. For more information, go to http://www.executesports.com .
Certain statements in this press release are forward-looking as defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include expectations regarding the ability of the company to continue its growth and the financial performance thereafter. These statements involve certain risks and uncertainties that may cause actual results to differ materially from expectations as of the date of this release. These risks include the ability to accomplish goals and strategies, anticipated revenue enhancements, general economic conditions and the level of consumer spending, and numerous other factors identified in the Company's Form 10-KSB and other filings with the Securities Exchange Commission.
Contact:
Execute Sports Inc.
(949) 498-5990
info@executesports.com
Glad to have you onboard.
ooops, was that a public reply?
Thanks, hope that didn't burn to many brain cells.
SIRI -- mcz's take. If it holds above $4 out the gate I will look for an entry to start flipping.
MIVT -- Can you give me the cliff notes real quick?
Your joking right?
Recap: When you see the stock your in love with hitting the most reads on the boards and the pps doesn't follow, it might be time to cut the luv and move along.
Yup, already looked myself. Reverse Merger matto was talking about after close.
Top 10 kool-aids for the day.
I posted 11 because BB is trading on the grey sheets. LOL
1 CyberKey Solutions (CKYS) 44856
2 XECHEM INTERNATIONAL, INC (XKEM) 31163
3 U. S. Sustainable Energy Corp (USSE) 28914
4 Sulja Bros. Building Supplies, Ltd (SLJB) 26706
5 Zeev's Turnips Patch-No Politics (ZEEV) 26232
6 BB's Penny Haven 24138
7 Blackout Media Corp (BKMP) 22973
8 PAYPRO INC (PYPR) 19133
9 CalBay (CBAY) 16158
10 ERHC Energy Inc. (ERHE) 13171
11 ETERNAL IMAGE INC (ETIM) 12113
PRRO on watch for am.
Sounds like a Dahmer.
I am blowing all my SIRI profits on gold speculation.
Help, I am being stalked by a chartist.
Thanks Rick, I know Vegas is bullish on INXR.
NEW YORK, Jan 18 (Reuters) - U.S. Federal Communications Commission Chairman Kevin Martin said on Thursday a rule that bars XM Satellite Radio Holdings Inc. (XMSR.O: Quote, Profile , Research) and Sirius Satellite Radio Inc. (SIRI.O: Quote, Profile , Research) from merging could be altered, if requested.
Martin, speaking to Reuters on the sidelines of a conference in New York, said he was not aware of any request to change the rule on satellite radio licensing ownership, which currently prohibits one entity from owning both licenses.
He said he was not aware of any request to change the rule, and declined to comment on the specifics of any potential satellite radio merger.
XM and Sirius shares jumped on his comments. XM was up 5 percent at $16.22 while Sirius rose 4.4 percent to $4.03.
HELLO SIRI
I'm comfortable with my adds at .0071. Will wait it out and see.
I don't care for the guy.
I have to work today, the better half has me painting.
Good luck trading Analysts!
Stocks That Make Kool-Aid Status: How Popular is my Stock?
For those that may not know what I meant by that comment, Bill Panetta has a nice post on kool-aid status.
http://www.investorshub.com/boards/read_msg.asp?message_id=15914506
I just want everyone to know how modest matto is. The guy hammered MRXT yesterday .
Thanks man. I owe you.
Reverse Split Repeat Offenders (RS/RO)
not sure if anybody here has this board bookmarked but if you are playing pennies you need to stay up-to-date on the guilty offenders.
http://www.investorshub.com/boards/board.asp?board_id=3017
Hey SA, can you update the ibox and add the dow jones and nasdaq charts? Would love to be able to see them real time on the board to know what the market is doing.