Aero Performance Products, Inc. Announces Sale of Its Majority Stock Position in...
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Aero Performance Products, Inc. Announces Sale of Its Majority Stock Position
in TTR-HP, Inc.
BLUFFDALE, Utah, April 20 /PRNewswire-FirstCall/ -- Aero Performance Products,
Inc. (OTC Bulletin Board: AERP), today announced that on April 15, 2009, the
company sold a majority of its interest in TTR-HP, Inc., which does business
as Aero Exhaust, Inc., to Flo-Co, LLC. The sale was undertaken, in large
part, to eliminate a significant majority of Aero Performance Product's
liabilities as reflected in its consolidated financial results and to
therefore allow Aero to move forward with its planned acquisition of Jones
Exhaust Systems, Inc., one of the most respected specialty exhaust
manufacturers in the United States.
Details of the TTR-HP transaction are included in a Current Report on Form 8-K
filed today with the Securities and Exchange Commission. The 8-K can be found
by clicking the "View SEC Filings" link on the company website,
www.aeroperformanceproducts.com.
As a result of the transaction, Aero is no longer the majority owner of TTR-HP
and is no longer required to consolidate the financial operations and position
of TTR-HP on its financial statements. The impact of this change is an
immediate reduction in the company's liabilities of $3,154,247. The total
liabilities of Aero after concluding the sale are $531,173.00.
Aero Performance Products also, under a previous license agreement with
TTR-HP, retains the right to use the "Aero" name, patents, and trademarks.
However, TTR-HP will continue to manufacture and distribute the Aero Exhaust
products to its customers.
In an effort to offset the liabilities of TTR for the purchaser, Aero
Performance Products issued Flo-Co 100,000 shares of its Series A Preferred
Stock, each share of which receives warrants to purchase common shares of
Aero. Aero also received a warrant from Flo-Co. to repurchase the warrants
and has an option to purchase ten million shares of TTR-HP for $750,000.
"From the time that current management was appointed to lead the public
company, Aero Performance Products was positioned to execute a roll-up
strategy, and the sale of our majority interest in TTR-HP has been undertaken
to assist in the furtherance of this strategy," said Bryan Hunsaker, CEO of
Aero Performance Products. "The Aero Exhaust business accounted for the vast
majority of the company's liabilities as reported in the latest consolidated
financial information filed by the company. These liabilities were hindering
the company's ability to successfully achieve its business goals, particularly
the execution of its roll-up strategy, which includes the planned acquisition
of Jones Exhaust Systems, Inc.
"One of the Company's primary objectives is to increase shareholder value, and
while the TTR-HP company may have provided an emotional connection for many of
our shareholders, its liabilities have been a tremendous impediment to our
ability to move forward with our overall game plan. When the TTR-HP stock
purchase commenced, it was anticipated that the market would accept the
liabilities along with the assets and allow the company time to pay down the
liabilities and execute on its rollup strategy. Unfortunately, due to the
significant downturn in the overall economy and the unavailability of market
resources, the liabilities have become more toxic. After several months of
internal review, it was concluded that the most prudent route for increased
shareholder value was to eliminate the TTR liabilities and move forward with
the Aero Performance business plan of strategic acquisitions. While this was
a difficult decision in many respects, management believes that this action
makes the most sense from a financial standpoint and is clearly in the best
interest of Aero Performance Products shareholders.
"We still strongly believe in Jones Exhaust, as well as its future potential
as part of Aero Performance Products, and believe this will be a positive
venture for the company and its shareholders. Jones Exhaust has a solid
revenue base, and we believe that this acquisition will allow Aero to achieve
a fair market valuation, without the toxic liabilities associate with TTR-HP.
Our primary focus will continue to be the close of the Jones Exhaust
acquisition and moving that company forward as an Aero subsidiary. We will
also continue to evaluate additional acquisition opportunities that are
presented to the company.
"The agreement to sell our majority interest in TTR-HP also includes the
repurchase provision so that in the future, if TTR-HP can be cleaned up and
management convinced of the value, Aero Performance Products may exercise its
rights to reacquire majority control of TTR-HP," Mr. Hunsaker added.
To sign up to receive information by email directly from the company whenever
new press releases, investor newsletters, SEC filings, and other written
material is issued, please visit http://www.aeroperformanceproducts.com.
About Aero Performance Products, Inc.
Aero Performance Products, Inc. (www.aeroperformanceproducts.com) is a holding
company that has entered into a definitive agreement to acquire Jones Exhaust
Systems, Inc., one of the most respected specialty exhaust manufacturers in
the United States.
Safe Harbor Statement: The statements in this release that relate to future
plans, expectations, events, performance and the like are forward-looking
statements within the meaning of the Private Securities Litigation Reform Act
of 1995 and the Securities Exchange Act of 1934. Actual results or events
could differ materially from those described in the forward-looking statements
due to a variety of factors, including the lack of funding, inability to
complete required SEC filings, and others set forth in the Company's report on
Form 10-K for fiscal year 2008 filed with the Securities and Exchange
Commission.
CONTACT:
A. Beyer
951-677-8073
investors@aeroperformanceproducts.com
SOURCE Aero Performance Products, Inc.
A. Beyer of Aero Performance Products, Inc., +1-951-677-8073,
investors@aeroperformanceproducts.com
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