For Wednesday, April 30th
CIRT, BIHC, PMID, SRSR, SIVC, KTCC
Our Stocks to Watch tomorrow include Cardio Infrared Technologies Inc. (OTC: CIRT), BIH Corporation (OTC: BIHC), Pyramid Breweries Inc. (NASD: PMID), Sarissa Resources, Inc. (OTC: SRSR), S3 Investment Company, Inc. (OTC: SIVC) and Key Tronic Corporation (NASD: KTCC).
CARDIO INFRARED TECHNOLOGIES (OTC: CIRT)
"Up 81.82% on Tuesday"
Cardio Infrared Technologies, Inc. is a technology and marketing company which is focused on developing the revolutionary and evolutionary process of combining exercise equipment with medical benefits that go far beyond the normal benefits of standard exercise equipment. Cardio Infrared Technologies, Inc. is committed to continue to market this equipment to the exercise and medical markets and to aggressively expand the market to every country around the world. The equipment has already been featured on Good Morning America and The View. Cardio Infrared Technologies, Inc. also has an aggressive growth plan that includes acquisitions and development of innovate new equipment in the exercise and medical industries.
April 29 -
Cardio Infrared Technologies Delivers Cardio-Cor to BioAgeless Center
Cardio Infrared Technologies, Inc. (OTC: CIRT), a leading health and wellness technology and marketing company, announced that the delivery and installation of a Cardio-Cor unit to the BioAgeless Center at 18701 Sherman Way, Reseda, CA 91335.
Wayne Bailey, President and CEO of Cardio Infrared Technologies, Inc. stated, "The BioAgeless Center is a new center that is designed to offer all of the latest equipment and treatments to slow down or halt the appearance of aging. The owner Fatemeh (Sherry) Khan Babufour attended and viewed the unit at the American Anti-Aging Show in Las Vegas last December 2007. The BioAgeless Center has been in the planning stage for many months. The BioAgeless Center is now open and has a backlog of customers. Sherry is very well respected in the community and has a large following in the anti-aging and wellness communities throughout Southern California."
The location in Reseda, CA is one of many of the new types of wellness and anti-aging centers being developed and started around the world to stress the movement into the health and wellness field. Health and wellness is one of the fastest growing industries in the world due to the aging baby boomers. This is an industry that is growing exponentially due to those aging baby boomers with their desire and demand for good health and youthfulness.
A big part of this trend to wellness, health and anti-aging is detoxification. The Cardio-Cor is in effect a detoxification unit. The Cardio-Cor unit is designed to help the body rid itself of toxins and chemicals that have accumulated in the body over many years. This toxicity is one of the causes of cancer and aging. The toxins and chemicals have accumulated in the fat cells of the body and in the lymphatic system. The Cardio-Cor unit was designed to address such problems. The anti-aging and wellness centers are stressing not only detoxification, but offers continuing education regarding the causes and how to avoid toxins and chemicals in the attendees lives.
BIH CORPORATION (OTC: BIHC)
"Up 23.33% on Tuesday"
This ticker does not currently have a company profile.
April 29 -
Baron International, a Subsidiary of BIH Corporation, Awarded Contract for the New Citi Field in New York
BIH Corporation (OTC: BIHC) announced that Baron International (a subsidiary of BIH) has been awarded a major contract for work at Citi Field, now under construction and the future home of the New York Mets.
The contract entails the complete installation of beverage systems for all fifty (50) concession locations throughout the new stadium and will be completed on schedule and in time for the projected opening of the new baseball season in April 2009.
Baron has extensive experience in large complicated contracts such as this, with a history of other comparable jobs such as Madison Square Garden, Keyspan Park (Brooklyn Cyclones, a NY Mets Farm Team), Waterfront Park (Trenton Thunder, a NY Yankees Double A Farm Team) and the IZOD Center (formerly Continental Arena), East Rutherford, N.J., home to the NJ Nets and NJ Devils amongst many others.
"We are extremely pleased that Baron has been awarded this contract as revenues from this job are very substantial; final revenue figures will be announced upon the completion as potential cost overruns and other unforeseen charges may be involved. The awarding of this contract solidifies Baron's reputation and 27 years of experience within the industry to complete major contracts on time and within budget," said Robert Ingala, President of Baron International.
PYRAMID BREWERIES INCORPORATED (NASD: PMID)
"Up 43.07% on Tuesday"
Pyramid Breweries, Inc. engages in brewing, marketing, and selling of craft beers in the United States. The company provides beer products under the Pyramid and MacTarnahan's brand names, which are brewed with malted barley, and wheat grains and hops, as well as with natural fruit extracts and spices. It also owns and operates two alehouse restaurants under the Pyramid Alehouse and MacTarnahan Taproom brand names in Berkeley, California; and Portland, Oregon. In addition, Pyramid Breweries, Inc. operates three alehouse restaurants located in Walnut Creek and Sacramento, California; and Seattle, Washington. The company also manufactures Thomas Kemper soda for The Kemper Company under the Purchase Agreement. It distributes its products to local grocery stores, convenience stores, restaurants, and taverns through independent distributors; and also involves in retail sale of beer, soda, food, and apparel in its alehouse restaurants. The company was founded in 1984. It was formerly known as Hart Brewing Corporation and changed its name to Pyramid Breweries, Inc. in 1996. The company is headquartered in Seattle, Washington.
April 29 -
Two Leading Craft Brewers Intend to Merge
Pyramid Breweries Inc. (NASD: PMID) (“Pyramid”) and Magic Hat Brewing Company & Performing Arts Center, Inc. (“Magic Hat”) announced the execution of a Letter of Intent (“Letter of Intent”), which contemplates a transaction by which Magic Hat will acquire Pyramid, through an agreed all-cash tender offer and subsequent merger, at $2.75 per share of Pyramid common stock on a fully-diluted basis.
The proposed transaction is subject to the negotiation and execution of a definitive merger agreement. The merger agreement will provide for a first-step tender offer for outstanding Pyramid shares by an acquisition entity wholly owned by Magic Hat, to be conditioned upon the acquisition of at least 66 2/3% of the outstanding shares of Pyramid. The tender offer, if consummated, will be followed by a merger of Magic Hat’s acquisition entity with and into Pyramid. The proposed transaction is also subject to the satisfactory completion of a due diligence review by Magic Hat of the business, financial and legal affairs of Pyramid, and receipt of necessary consents and approvals of regulatory agencies and third parties.
The Letter of Intent provides for the payment of a break-up fee payable by Pyramid to Magic Hat in specified circumstances, and also for the payment of Magic Hat’s reasonable expenses in specified circumstances, each involving the failure to consummate the proposed transaction.
Certain shareholders of Pyramid holding approximately 29% of the outstanding Pyramid common stock have, concurrently with Pyramid’s execution of the Letter of Intent, entered into a Tender and Support Agreement (the “Tender Agreement”) with Magic Hat, pursuant to which they have agreed to tender the shares owned by them in the Magic Hat tender offer and have granted Magic Hat an irrevocable proxy with respect to such shares. The portion of the shares subject to the Tender Agreement in excess of 19.9% of the outstanding shares of Pyramid common stock may be released from the provisions of the Tender Agreement in specified circumstances in connection with the receipt by Pyramid of unsolicited superior offers as defined in the Tender Agreement.
The closing of the proposed transaction, subject to the conditions referred to above, is anticipated to occur not later than August 31, 2008.
The board of directors of Pyramid has approved the transactions contemplated by the Letter of Intent.
“The combination of these two well established, high profile craft breweries will be very complementary given our respective brand portfolios and the geographies in which we predominantly operate. Additionally, there will be a number of important benefits for Pyramid to be part of a private company versus continuing to operate as a stand alone public entity. This consolidation makes both good strategic and financial sense and is well timed, particularly as the beer industry’s competitive dynamics continue to intensify,” said Pyramid CEO Scott Barnum. “The Company will continue to have offices in Seattle, its historical home, and will seek opportunities to capitalize on the enhanced assets and capabilities of the new combined entity,” he added.
Martin Kelly, CEO of Magic Hat said, “We have a great deal of respect for Pyramid’s brand heritage, award-winning beers and its dedicated employees, and look forward to consummating this transaction, which provides both strategic and financial benefits both to Pyramid’s and Magic Hat’s stakeholders.”
The tender offer for the outstanding common stock of Pyramid contemplated by the Letter of Intent has not commenced, and will only commence pursuant to the terms of a definitive merger agreement, as described above. This document is neither an offer to purchase nor solicitation of an offer to sell securities. At the time the tender offer is commenced an affiliate of Magic Hat Brewing Company & Performing Arts Center, Inc. will file a tender offer statement on Schedule TO with the U.S. Securities and Exchange Commission (the “SEC”). The tender offer statement (including an offer to purchase, a related letter of transmittal and other offer documents) and the solicitation/recommendation statement will contain important information that should be read carefully before any decision is made with respect to the tender offer. Those materials will be made available to Pyramid’s shareholders at no expense to them. In addition, all of those materials (and all other offer documents filed with the SEC) will be available at no charge on the SEC’s web site at www.sec.gov.
ABOUT MAGIC HAT BREWING COMPANY & PERFORMING ARTS CENTER, INC.
Founded in 1994, Magic Hat has become one of the largest craft brewers on the east coast, and ranks among the fastest growing companies in the category nationwide. The company has methodically expanded its reach, and today sells its beers from Maine to Georgia and as far west as Illinois. Magic Hat is known for its distinctively flavorful offerings and imaginative recipes that combine ancient brewing traditions with the miracles of modern science. Created in the company’s unique brewery and Artifactory, Magic Hat’s family of fermentations includes three year-round beers (#9®, Circus Boy®, and Lucky Kat®) a full line of seasonal ales, and a variety of special single-batch “Odd Notions.” Magic Hat has been hailed by the appreciative palates and grateful connoisseurs everywhere who enjoy the brewer’s pours more than any they’ve explored before. For more information, visit www.magichat.net.
SARISSA RESOURCES INCORPORATED (OTC: SRSR)
"Up 56.25% on Tuesday"
Sarissa Resources is an American junior exploration company that identifies and explores mineral properties in North America. Currently, Sarissa has interests in properties with base metal, precious metal, uranium and niobium prospects in Northern Ontario, Canada.
April 24 -
Sarissa Resources Engages Auditor
Sarissa Resources, Inc. (OTC: SRSR) announced that the Company has engaged the services of an independent auditing firm to audit the consolidated financial statements of Sarissa Resources in accordance with Generally Accepted Accounting Principals (GAAP) and to provide the Company's Board of Directors with an opinion on them in accordance with the standards of the Public Company Accounting Oversight Board (United States). Michael F. Albanese, CPA, has already begun the financial auditing process for Sarissa.
Sarissa president Scott Keevil stated, "With all of the recent progress that Sarissa has made, particularly the acquisition this year of the Nemegosenda carbonatite property, the board feels that hiring an independent auditor is a natural progression from the previously announced retention of an independent geological consulting firm." Sarissa has previously announced the engagement of Hawk Exploration Consultants to independently assess the extensive amount of historical work conducted on the Nemegosenda deposits.
Mr. Keevil, continued, "Our main priority is to keep focused on confirming the potential at Nemegosenda; but it's also time for us to look seriously at the corporate and listing structure of Sarissa in order to develop a strategy that ensures our shareholders start to see the value of their holdings getting an adequate reflection in the market, and this is another step down that road."
S3 INVESTEMENT COMPANY (OTC: SIVC)
"Up 35.71% on Tuesday"
S3 Investment Company, Inc. (www.s3investments.com) is a holding company with two subsidiaries doing business in the China market. S3 holds a 100% equity interest in Redwood Capital (www.redwoodcapinc.com), which assists private Chinese companies in accessing U.S. capital markets by utilizing a network of investment banking relationships to achieve reverse merger transactions, and a 51% equity interest in SINO UJE (www.sinouje.com), a non-stocking distributor of medical and industrial high-tech products to markets throughout China.
April 29 -
S3 Investment Company Announces CEO Trip to China for Meetings With Existing Redwood Capital Clients and to Bolster Pipeline of Prospective Redwood Clients
S3 Investment Company, Inc. (OTC: SIVC), the majority owner of Redwood Capital, which assists private Chinese companies in accessing the U.S. capital markets through reverse mergers into U.S. public companies, today announced that chairman and chief executive officer Jim Bickel is preparing to travel to China for meetings with existing Redwood Capital clients and to support the expansion of Redwood's pipeline of prospective clients.
Redwood Capital has three current Chinese private company clients, Changzhou Haijie Metallurgical Machinery Manufacturing Co. Ltd., Wuhan International Trade College, and Shandong Yiteng Chemical Co., Ltd. Given the company's goal to complete one reverse merger transaction per quarter, Redwood Capital will continue to target and evaluate additional potential clients. The company's extensive network of contacts and the bourgeoning business landscape in China provides abundant deal flow for Redwood Capital.
"In order to meet our goal of one closed reverse merger transaction per quarter and given the nature of the Redwood Capital business, the development of a robust pipeline of prospective clients is a critical element in the successful execution of Redwood's strategy," Mr. Bickel stated. "The reality is that not every client in the Redwood Capital pipeline is going to ultimately complete a reverse merger transaction. The pipeline is much larger than just the announced clients, and some companies in the pipeline will not meet the necessary standards for a U.S. public listing."
"The work of sorting through all potential client companies requires significant support from S3, and we will continue to provide that support, even when it entails frequent trips to China," Mr. Bickel added.
S3 recently announced that the Redwood Capital business has become an even greater focus due to the priority that management has placed on building value for shareholders.
Redwood Capital participated in a transaction involving Dalian Chuming, a pork processing company that trades in the U.S. as Energroup Holdings Corporation under the symbol ENHD. As part of the transaction, Energroup Holdings Corporation, a Nevada corporation, acquired all of the issued and outstanding capital stock of Precious Sheen Investments Limited ("PSI"), a British Virgin Islands corporation and parent company of PRC-based Dalian Chuming.
Redwood Capital was issued 428,095 shares of Energroup Holdings Corporation as the equity portion of its payment for provided advisory services for the transaction. Institutional and accredited investors participated in a $17.0 million private placement with Energroup Holdings Corporation, paying $4.40 per share. At the placement price, the value of Redwood Capital's equity position would exceed $1.8 million. At the most recent trading price of Energroup Holdings Corporation's common stock, the value of the equity position would exceed $2.1 million.
Energroup Holdings Corporation has since reported that revenues for the year ended December 31, 2007 totaled $124.7 million, a 77% increase over the $70.4 million reported in 2006. Gross profit for 2007 was $20.3 million, representing a 61% increase from the $12.6 million reported in 2006. Overall, gross margins were 16.3% in 2007, compared to 17.9% in 2006.
Total operating expenses for 2007 were $6.2 million versus $2.9 million for 2006. Operating income increased 70% to $14.1 million in 2007 versus $9.7 million for 2006, while operating margins were 11.3% compared to 13.8%. After tax net income for 2007 increased 44% year-over-year to $11.7 million from $8.1 million and earnings per diluted share were $0.67 in 2007 as compared with $0.47 per share in the prior year, based upon 17.3 million shares outstanding.
To sign up to receive information by email directly from S3 Investment Company when new press releases, investor newsletters, SEC filings or other information is disclosed, visit www.s3investments.com/investors/.
KEY TRONIC CORPORATION (NASD: KTCC)
"Up 33.85% in after hours trading on Tuesday"
Key Tronic Corporation, doing business as KeyTronicEMS Co., and its subsidiaries provide electronic manufacturing services (EMS) and consumer related products for original equipment manufacturers primarily in the United States, Mexico, and the People's Republic of China. It also manufactures keyboards and other input devices for personal computers. The company's EMS services include product design, surface mount technologies for printed circuit board assembly, tool making, precision plastic molding, liquid injection molding, automated tape winding, prototype design, full product builds, and printing screened silver flexible circuit membranes. Key Tronic markets its products and services primarily through its direct sales department aided by field sales people and distributors. The company was founded in 1968 and is headquartered in Spokane Valley, Washington.
April 29 -
Key Tronic Corporation Announces Third Quarter Results
Third Quarter Revenue Up 9% and Earnings Up 57% Over Previous Year; Continued Expansion and Diversification of Customer Base
Key Tronic Corporation (NASD: KTCC), a provider of electronic manufacturing services (EMS), announced its results for the quarter ended March 29, 2008.
For the third quarter of fiscal 2008, Key Tronic reported total revenue of $51.5 million, up 9% from $47.2 million in the same period of fiscal 2007. For the first nine months of fiscal 2008, total revenue was $146.8 million, compared to $152.6 million in the same period of fiscal 2007.
Net income for the third quarter of fiscal 2008 was $1.2 million or $0.11 per diluted share, up 57% from $0.7 million or $0.07 per diluted share for the same period of fiscal 2007. For the first nine months of fiscal 2008, net income was $3.0 million or $0.29 per diluted share, up 19% from $2.5 million or $0.24 per diluted share for the same period of fiscal 2007.
“We are pleased with our strong year-over-year third quarter growth in revenue and earnings, driven by increased demand from both new and established customer programs,” said Jack Oehlke, President and Chief Executive Officer. “We were also pleased to see the expected improvement in our gross margin and profitability from the previous quarter.”
“During the third quarter, we continued to diversify our customer portfolio across a wide range of industries, winning new customer programs involving a consumer medical device, energy technology, home air filtration and specialized touch-screen panels. We expect these new programs to begin contributing revenue in fiscal 2009 and we continue to pursue new opportunities for profitable growth.”
For the fourth quarter of fiscal 2008, the Company expects revenue in the range of $50 million to $54 million, with earnings in the range of $0.10 to $0.15 per share.
Key Tronic will host a conference call today to discuss its financial results at 2:00 PM Pacific (5:00 PM Eastern). A broadcast of the conference call will be available at www.keytronic.com under “Investor Relations” or by calling 800-218-0204 or +1 303-262-2137. A 48-hour replay will be available by calling 800-405-2236 or +1 303-590-3000 (Reservation No. 11111515). A replay will also be available on the Company’s Web site.