U.S. Automotive Manufacturing, Inc. Announces Strategic Investment – Brief Article
U.S. Automotive Manufacturing, Inc. (USAM) said that it had entered into a letter of intent whereby Satisfied Brake Products Ltd. (Satisfied) of Montreal, Canada will make a strategic investment in (“USAM”).
Martin Chevalier, President and CEO of USAM, stated that “USAM was excited at the prospect of a strategic alliance with Satisfied.” Mr. Chevalier noted that “Satisfied serves the same market as USAM, with little or no overlap in customer base.” He said that “while the investment deals with the securities overhang resulting from the Reg `S’ Debentures and stabilizes the company’s overall financial condition, the resulting alliance further serves the shareholders and customers of USAM in aligning the resources of both companies in a consolidating market – a case of the whole is greater than the sum of its parts.”
Chevalier concluded by stating that “the board sees the pending investment as a material benefit to the shareholders, employees and customers of USAM. The potential dilution occasioned by the Reg `S’ Debentures is formidable and without benefit to the company’s ability to compete in its marketplace.” He continued that “based on this new alliance, the two companies contemplate a substantial inter-company supply relationship, better utilizing USAM’s capacities, and thereby translating into an improved bottom line.”
U.S. Automotive Manufacturing, Inc., through its wholly owned subsidiaries, Quality Automotive Company and U.S. Automotive Friction, Inc., manufactures, assembles and distributes new and rebuilt automotive products (brake pads, linings and remanufactured brake shoes) to other automotive manufacturers and to the automotive after-market. The company intends to position itself to compete more formidably in the manufacture and sale of friction materials as well as other “under car” automotive parts through both acquisition and internal growth.
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