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a21 signs letter of intent giving Applejack Art Partners majority stake in business
a21, Inc. (OTCBB: ATWO) one of the largest stock licensing companies in the world has announced that it has entered into a non-binding Letter of Intent (LOI) with Applejack Art Partners, Inc. of Vermont. Under the terms of the LOI, Applejack would purchase all of a21’s outstanding notes (a principal amount of $18,000,000) and all of the shares of a21 common stock (approximately 41 million shares). a21 would then exchange approximately 110 million newly issued shares of its common stock with Applejack in satisfaction of approximately $13,000,000 of such notes. “We are pleased to make an investment in a21 and believe that our complementary product offerings should result in greater sales opportunities and efficiency for both companies” stated Jack Appelman, Chief Executive Officer of Applejack.
John Ferguson, Chief Executive Officer of a21, said, We are excited to be working with Applejack and believe the transaction should be beneficial to a21’s stockholders, employees, and other stakeholders. This transaction will result in a significant reduction in a21’s outstanding indebtedness and position the company to execute its growth strategy.
A21 states that it intends to complete this transaction as soon as possible, however, the offer is subject to various conditions, including execution of definitive agreements by a21, the note holders, and Applejack. In addition, on July 16, 2008, Applejack made a credit facility available to a21 pursuant to which a21 could borrow up to $500,000 with the consent of Applejack. One hundred thousand dollars has already been advanced to a21.
Posted in: A21 Group, News, Stock Photo Companies
