Monday October 19, 10:59 am Eastern Time
LONDON--(BUSINESS WIRE)--Oct. 19, 1998--Biofarm, Inc. (BIOF) announced today its acquisition of 100% of the capital stock of Britten - Normal Limited (BN) from Litchfield Continental Limited.
BN designs and manufacturers the BN2 Islander and Defender series of light, twin-engined STOL (short takoff and landing) airplanes. In excess of 1,200 such planes have been delivered to customers in over 120 nations, ranging from independent air taxi operators and regional airlines to law enforcement groups and military forces.
BN also provides technical support as well as a full overhaul and repair service. BN also modifies and upgrades existing planes at its Isle of Wight facility.
Keith D. Beekmeyer, newly appointed Chairman and CEO of Biofarm, stated that the acquisition by Biofarm of BN was consistent with previous announcements that Litchfield would make available to Biofarm additional properties without additional consideration.
Litchfield, which conveyed Biofarm S.A. to Biofarm, Inc. and which received delivery of its Biofarm, Inc. Convertible Secured Debenture on September 4, 1998, has agreed that its transfer of assets to Biofarm, Inc. will not only be without additional consideration but will also be without funded debt.
In addition, Mr. Beekmeyer stressed that Litchfield has no present intention of converting any of its Debenture into shares of Biofarm, Inc. Common Stock even after the restriction upon conversion expires in March 1999.
The balance sheet of Britten - Norman as at July 17, 1998, shows a net balance sheet worth of approximately USD 17,684,535. Biofarm, Inc. anticipate's revenue for the year ending December 31, 1998 to be USD 4,950,000.
Biofarm, Inc. estimates that revenues for 1999 will be USD 16,500,000 and pre-tax profits to be approximately USD 4,950,000. This is achieved after a comprehensive restructuring plan was implemented during the second half of 1998.
As one of the only three UK aircraft manufacturers, BN also carries the highest CAA (US) aerospace approval (A1 Primary Company, design and Manufacture), utilizing the expertise and skill development over the past 35 years in designing and manufacturing Islander aircraft.
BN is able to compete in the international marketplace and to offer a complete aircraft design, tooling, manufacture, assembly and testing service.
Also, as permitted by it JAR 145 Approval, BN offers a full aircraft maintenance and repair service for aircraft up to 5700 kg and is a fully approved British Ministry of Defense contractor and flight trial provider.
British Standards ISO 9001 qualifies BN to carry out the design, development, manufacture, post-design servicing of fixed-wing aircraft components. BN also repairs and services civil and military propeller-driven aircraft.
BN's technical publications department provides to customers using BN's CAA and Ministry of Defense approvals a high quality service for all types of operational and technical documentation. These include operations manuals, maintenance and repair publications and illustrated parts catalogues.
BN utilizes state-of-the-art computer software to produce both hard copy and interactive technical publications. BN's own in-house printing unit provides design, print and finishing service in single or full colour.
Mr. Beekmeyer also stressed that, while under ownership by Litchfield, BN has been successfully restructured both financially and operationally and is now poised for future growth.
While still focusing on its core business of making and selling aircraft, additional income has been stimulated by tapping income streams from spares and aircraft maintenance, technical publications and joint ventures and sub-contract packages.
Mr. Beekmeyer confirms that Litchfield has other businesses which will be contributed to Biofarm, Inc. prior to December 31, 1998.
(The foregoing announcement contains forward- looking statements that necessarily involve the risks and uncertainties involved in any business venture, especially one with international ramifications.)
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