Orange 21 Inc. has agreed to sell 90% of the capital stock of its wholly-owned manufacturing subsidiary, LEM, S.r.l. (“LEM”), to LEM's senior management and two of its outside suppliers for EUR 15,000. The sale will be effective on Dec. 31, 2010.
The agreement provides that the company will purchase a minimum amount of certain goods or services from Lem during fiscal years 2011 and 2012, subject to the continued employment of Messrs. Lodigiani and Marcassa by Lem. The minimum purchase amounts for fiscal 2011 and 2012 are at least EUR 3,717,617 and EUR 1,858,808, respectively.
A. Stone Douglass, Orange 21 Inc.'s CEO, commented, “We believe this is an opportunity for us to refocus our primary efforts on our sales and distribution of our multiple brands, Spy Optic, O'Neil, Margaritaville and Melodies by MJB through our remaining wholly-owned subsidiaries, Orange 21 North America Inc. and Orange 21 Europe S.r.l.”