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Gas industry

Struthers Industries Announces Letter of Intent for $30 Million Public Offering

Strategic Insights

— 2 min read

Struthers Industries, a company based in Tulsa, Oklahoma, has announced that World Interactive Network Inc. (WIN-TV) has secured a letter of intent for a firm commitment public offering of up to $30 million from Commonwealth Associates, an investment banking firm in New York. This move comes after Struthers Industries entered into a Definitive Asset Purchase Agreement to acquire all the assets of World Interactive Network Inc. for approximately $82 million. The asset purchase will be accomplished through a stock transaction, with the Board of Directors and Officers of WIN-TV becoming the Board of Directors and Officers of Struthers.

As part of the agreement, Struthers will issue a total of approximately 30 million shares of common stock to WIN-TV in payment for the assets of WIN-TV. WIN-TV plans to utilize these shares for the above-mentioned public offering and for the acquisition of operating-industry related companies. The proposed transaction with WIN-TV will take place following the distribution of the main operating subsidiary, Rose International LTD., to shareholders as a one-time stock dividend.

Key Takeaways:

  • Struthers Industries has announced a letter of intent for a firm commitment public offering of up to $30 million by World Interactive Network Inc. (WIN-TV).
  • The public offering will take place following the completion of the WIN-TV/Struthers acquisition and will be utilized for the acquisition of operating-industry related companies.
  • Struthers will issue a total of approximately 30 million shares of common stock to WIN-TV in payment for the assets of WIN-TV.
  • The asset purchase will consist of approximately $82 million of assets, including new consumer-oriented interactive technology.
  • WIN-TV creates, develops, finances, and produces new media entertainment and direct response via interactive programming, with an emphasis on merchandising, contests, promotions, and prepaid sponsor-driven programs.
  • Struthers will distribute to the shareholders ownership of its main operating subsidiary, Rose International LTD., as a one-time stock dividend.
  • This transaction will take place before the proposed transaction with WIN-TV, who will not participate in the stock dividend.
  • Commonwealth Associates is serving as the investment banking firm for the public offering.
  • The Board of Directors and Officers of WIN-TV will become the Board of Directors and Officers of Struthers as part of the acquisition.

Statistics:

  • Up to $30 million to be raised through the public offering.
  • Struthers will issue approximately 30 million shares of common stock to WIN-TV.
  • Asset purchase valued at approximately $82 million.
  • WIN-TV will utilize the shares for the public offering and acquisition of operating-industry related companies.

Sources:

  • Business Wire, "Struthers Industries Inc. Announces Letter of Intent for Firm Commitment Public Offering" (September 20, 1995)
  • Struthers Industries Inc., press release (September 20, 1995)

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