Dec. 22, 2009, 9:20 a.m. EST · Recommend · Post:
San West Inc. Secures $10 Million Financing Commitment From Institutional Investor
Growth Capital Reinforces San West's Capital Position and Enhances Company's Ability to Penetrate Personal Motorsports Market
SAN DIEGO, CA, Dec 22, 2009 (MARKETWIRE via COMTEX) -- San West Inc. /quotes/comstock/11k!snwt (SNWT 0.15, -0.03, -14.71%) , an emerging leader in the design, manufacturing, sales and repairs of off-road buggies, announced today that it has entered into an Investment Agreement (the "Agreement") for a $10 million equity line of credit with Dutchess Opportunity Fund, II, LP ("Dutchess").
"This significant financing arrangement gives San West and its subsidiaries access to growth capital, enabling us to accelerate our growth strategy and implement additional marketing initiatives to take full advantage of the increasing demand for personal motorsports vehicles, parts, services and accessories," commented Frank Drechsler, San West Inc. Chief Executive Officer. "We expect to use this capital to further leverage our retail and online sales activities and further reinforce our brand in the industry. With this agreement in place, San West has reinforced its working capital position and is fully prepared to penetrate the off-road motorsports and personal watercraft industries."
During the 36-month term of the Agreement, the Company may sell shares of its common stock to Dutchess up to the total commitment amount of $10 million issued under the equity line, at per share prices to be determined based on market prices in accordance with an agreed-upon formula. The Company is permitted to draw on the equity line once an effective registration statement covering the resale of the shares. Subject to the effectiveness of a registration statement covering the shares and the satisfaction of other customary conditions, the Company may, at its option when it determines it is appropriate, draw on the equity line from time to time in accordance with the timing and volume provisions set forth in the Agreement.
"We believe that San West's efforts to build a one-stop retail and online outlet for all facets of this growth industry represent a compelling investment for our fund," stated Douglas Leighton, a Dutchess Managing Partner.
In the last year, San West has experienced rapid sequential growth, due to organic increases in sales and the strategic acquisition of several subsidiaries. In addition, the Company has partnered with other industry leaders and is management is continuing to expand the Company's portfolio of products, services, and accessories to create a retail and online one-stop-shop for off-road motorsports, personal watercraft, service and accessories.
About Dutchess Capital
Dutchess Capital is an investment manager which provides creative financing for promising, growth-stage companies. Founded in 2000, funds managed by Dutchess have made over $200 million in direct investments in companies which span a wide array of industries including; Telecom, Wireless Communications, Healthcare, Biotechnology, Healthcare, Internet, e-Commerce, Technology, Media, Oil & Gas, Defense, Homeland Security, Financial Services, Entertainment, Nuclear Sciences, Precious Metals, Manufacturing, Apparel, Textiles, Consumer Products and Alternative Energy.
For almost a decade Dutchess, has been a global leader in CSLoCs and has transacted in excess of $1.4 billion in such financings. The CSLoC is a creative financing structure by which publicly traded companies can raise capital quickly, efficiently and with less dilution than most traditional offerings.
For more information, please visit: www.dutchessopportunity.com
About San West Inc.
San West designs, manufactures, sells and repairs off-road buggies, and additionally provides aftermarket performance products and accessories for off-road buggies. Products are sold via three divisions: at retail store locations, via the online store and through its growing dealer network. Buggy repair services are sold and fulfilled at the Santee, California retail location. For further information about San West Inc. visit www.CountyImports.com, www.BuggyWorld.net, www.CountyImportParts.com and www.SanWestInc.com.
Certain statements contained herein are "forward-looking" statements (as defined -- Private Securities Litigation Reform Act of 1995). SNWT cautions that the statements made in this press release constitute forward-looking statements and no guarantees of future performance and actual results or developments may differ materially from projections in forward-looking statements. Forward-looking statements are based on estimates and opinions of management at time the statements are made.
Contact:
Hayden IR
Brett Maas
Email Contact
(646) 536-7331
SOURCE: San West
