Agreement entered into for the sale of NBI's U.S. business
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TORONTO, Oct. 31 /CNW/ - Nevada Bob's International Inc. ("NBI") (TSX Venture Exchange - "NBI.U") announces that its wholly-owned subsidiary, Nevada Bob's Franchising Inc. ("NBFI"), has entered into an asset purchase agreement with Golfers' Warehouse, Inc. which provides for the sale by NBFI of certain of the assets of NBFI used in the operation of its Nevada Bob's business in the United States (the "U.S. Business Assets"), including the United States Nevada Bob's trademarks, United States license agreements and the domain name "nevadabobs.com". The purchase price payable for the U.S. Business Assets is US$1,550,000 subject to adjustment for the amount of outstanding electronic gift cards, estimated to be less than $10,000, plus certain retention bonuses which may become payable. NBFI will retain the Nevada Bob's worldwide trademarks excluding the United Kingdom, Europe, Canada and the United States. The purchase price is payable as follows: (a) US$850,000 is payable on closing; (b) US$375,000 is payable on October 31, 2006, together with a retention bonus which may become payable of up to US$187,500; and (c) US$325,000 is payable on October 31, 2007, together with a retention bonus which may become payable of up to US$162,500. Completion of the sale of the U.S. Business Assets is conditional upon, among other things, receipt of the approval of the TSX Venture Exchange and the approval of NBI's shareholders. Golfers' Warehouse, Inc. is a large golf retailer in the United States with its head office in Hartford, Connecticut. Scott Collisson, Vice President and C.O.O. of NBI, will be relocating to Hartford, Connecticut to head up the Nevada Bob's United States network system. Kevin Baker, President and Chief Executive Officer of NBI, commented that, "This transaction will give the U.S. Nevada Bob's network the opportunity to grow with one of the larger golf retailers in the U.S."
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