TORRANCE, Calif. – Following its meeting of the Board of Directors, Nova Communications Ltd. said in a statement yesterday that the company will direct the proceeds of its $20 million private equity line of credit with Dutchess Private Equity Funds, L.P. toward the personal watercraft industry.
Nova has invested numerous resources and funds into the personal watercraft industry over the last year, and said it is evaluating several additional acquisition candidates.
Nova signed a Memorandum of Understanding with PowerSki International one year ago, and recently entered into a joint venture agreement with Armor Enterprises Inc. to develop an electric propulsion engine for the marine industry.
"The Board of Directors' decision sets a significant direction for the company, as it will venture beyond the potential merger with PowerSki International and concurrently develop additional watercraft vehicles and acquisition plans,” said Nova CEO Ken Owen. "Our goal is to build shareholder value not only through currently planned acquisitions, but also through the acquisition and development of other watercraft products and machines -- such as additional acquisition candidates and our recent announcement to develop an electric marine propulsion system for personal watercraft."
Nova has executed a financing agreement with Dutchess Private Equities Fund, L.P., based in Boston, Mass., whereby Dutchess shall invest up to $20,000,000 in Nova Communications through equity transactions in a private equity line of credit, good for 36 months. More information on the agreement is available at the
Securities and Exchange Commission Web site.