Expo Holdings, Inc. to Create Private Entity
November 19 2009 - 12:01PM
Marketwired
Expo Holdings, Inc. (PINKSHEETS: EXPH), intends to spin off its
etc. (pronounced "etcetera") division into a privately held
corporation.
It is the company's intention to spin off its etc. division into
a privately held entity with the same shareholder base as the
parent company Expo Holdings, Inc. It is expected that shares will
be distributed on a 1 share in the private entity for each 10
shares held in Expo Holdings, Inc. at the record date. The shares
are expected to be issued in the form of a dividend.
Certain key assets, including but not limited to certain
intellectual property, operating capital, and material handling
equipment would be transferred to the new entity.
The exact date of the spin off has yet to be finalized; however
it is tentatively scheduled to occur on or about the first of
January 2010. This allows shareholders ample time to review their
investment in Expo Holdings, Inc.
James D. Brown, CEO, stated, "Long term, it is in the company's
and its shareholders' best interest to create to two fully
operational, high growth opportunity companies. Each company would
have its own, focused growth strategy. Further, it is our intention
to fully report all financial activity of the new company to its
shareholders and follow guidelines that would generally be viewed
as fully reporting including the use of fully audited
financials."
Glenn Harrs, current company President to be named CEO of the
new entity.
Brown stated, "We are creating a new sales and marketing
organization, which includes light manufacturing, but mostly
outsources the manufacture of our intellectual property. Expo and
its subsidiaries will be the primary manufacturing source; however,
in certain retail situations where competition is keen, we will
license our intellectual property to other companies/brands. We
expect this new entity, within a reasonable time period, to be
profitable, scaleable, and a prime candidate for future listing
events."
Shareholders are cautioned that this is a complex and difficult
process. The record date may change based on completion of
necessary legal tasks. Performance results should not be expected
"overnight" and management views success, if any, to be expected in
years, not days or months. Other than to report its financial
standing to its shareholders, the new entity will most likely be
completely "silent" for an extended period.
Additional information will be available at or before the
company's December 2, 2009 shareholder meeting. The meeting will be
held at the company's headquarters at 116 Shaver Street, North
Wilkesboro, NC. 28659. The meeting will begin promptly at 3:00pm
ET. All shareholders are warmly invited to attend. Contact Tammy at
336-667-8765 to make your appointment to attend. A press release
will coincide with the shareholder meeting for those shareholders
unable to attend.
Expo Holdings operates in North Wilkesboro, NC. D&D Displays
is a wholly owned subsidiary of Expo Holdings, which specializes in
custom cabinetry and high end store fixtures for retail vendors
such as Newell-Rubbermaid, Inc., Bosch Tool Corporation, and Lowe's
Companies. D&D Displays has been in operation since 2000 and
joined Expo Holdings in 2006.
This release includes forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section
27E of the Securities Act of 1934. Statements contained in this
release that are not historical facts may be deemed to be
forward-looking statements. Investors are cautioned that
forward-looking statements are inherently uncertain. Actual
performance and results may differ materially from that projected
or suggested herein due to certain risks and uncertainties
including, without limitation, ability to obtain financing and
regulatory and shareholder approvals for anticipated actions.
Contact: J.D. Brown D&D Displays, Inc. 336-667-8765
www.expoholding.com
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