TORRANCE, Calif., -- Nova Communications Ltd. said yesterday that it has executed a further Memorandum of Understanding to merge with PowerSki International Corporation, the designer and manufacturer of the patented PowerSki Jetboard, within one month following completion of Nova's financing.
According to its press release: "Per the terms of the Memorandum of Understanding, within one month following completion of Nova's financing, but not later than Sept. 2, 2004, Nova and PowerSki intend to enter into a definitive agreement wherein PowerSki will be merged into Nova, with Nova being the surviving corporation."
Upon completion of the merger, Nova will change its name to PowerSki International Corporation. Prior to execution of the merger, Nova shall complete the remainder of a $2 million financing for PowerSki, for which Nova is presently securing the funding vehicle, the release said.
As recently announced by PowerSki and Nova, PowerSki has executed a three-year manufacturing agreement, worth approximately $44 million, with the PATx Division of The Hines Group. The contract provides fully outsourced manufacturing of 20,000 PowerSki Jetboards, plus an additional 4,000 SuperTorqueXT engines. With Jetboard inventory manufactured via this contract, PowerSki plans to fill its order backlog and aggressively pursue its projected sales goals for 2004.
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