NORTH WILKESBORO, NC -- 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.
Source: Expo Holdings, Inc.
Have something to say? Share your thoughts with us in the comments below.