Nevada Bob's International's wholly-owned subsidiary, Nevada Bob's Franchising Inc. entered into an asset purchase agreement with Golfers' Warehouse. The deal provides for the sale of certain of the NBFI assets used in the operation of Nevada Bob's business in the United States, including the United States Nevada Bob's trademarks, United States license agreements and the domain name “nevadabobs.com”
The purchase price payable for the U.S. Business Assets is
US$1,550,000 subject to adjustment for the amount of outstanding electronic
gift cards, estimated to be less than $10,000, plus certain retention bonuses
which may become payable. NBFI will retain the Nevada Bob's worldwide
trademarks excluding the United Kingdom, Europe, Canada and the United States.
The purchase price is payable as follows: (a) US$850,000 is payable on
closing; (b) US$375,000 is payable on October 31, 2006, together with a
retention bonus which may become payable of up to US$187,500; and
(c) US$325,000 is payable on October 31, 2007, together with a retention bonus
which may become payable of up to US$162,500.
Completion of the sale of the U.S. Business Assets is conditional upon,
among other things, receipt of the approval of the TSX Venture Exchange and
the approval of NBI's shareholders.
Golfers' Warehouse, Inc. is a large golf retailer in the United States
with its head office in Hartford, Connecticut. Scott Collisson, Vice President
and C.O.O. of NBI, will be relocating to Hartford, Connecticut to head up the
Nevada Bob's United States network system.
Kevin Baker, President and Chief Executive Officer of NBI, commented
that, “This transaction will give the U.S. Nevada Bob's network the
opportunity to grow with one of the larger golf retailers in the U.S.”