Torpedo Sports USA, Inc. has evaluated the future business prospects for its children's snow products and related business conducted by its wholly owned subsidiary, Torpedo Sports, Inc. of Canada, as previously announced on February 4, 2004.
Following this evaluation, Torpedo Sports, Inc. has determined it will not make a proposal to its creditors under Canadian law as previously announced on January 27, 2004, and has declared bankruptcy with the intention to be liquidated. The Company is presently negotiating with a related entity, VP Sports, Inc., to purchase Torpedo's 100% stock position in Torpedo Sports, Inc. and assume the liquidation responsibilities. This action will substantially eliminate the Company's obligations and allow it focus on other business opportunities.
As announced on January 21, 2004, the Company retained Blake Advisors, a business consulting firm based in Edina, Minnesota, to serve as its advisor regarding strategic options for the Company's future. Blake Advisors has identified the biotechnology sector as the primary focus for a new business opportunity. The Company and Blake Advisors are conducting due diligence on several potential opportunities in this area, however, no specific transaction has been initiated and no agreements have been reached at this time. The Company and Blake Advisors intend to continue their investigations and are confident a suitable opportunity will be found.
