Thomas Equipment Acquired By TEQI
Frank P. Crivello, managing member, Crivello Group LLC, announced that Thomas Equipment 2004 Inc., and Thomas Ventures Inc., ("Thomas") entities formed for this acquisition, reached an agreement with Thomas Equipment Ldt to acquire substantially all of the operating assets of Thomas Equipment Ltd.
Thomas Equipment Ltd. manufactures a complete line of potato harvesting and handling equipment. It also manufactures and distributes a full line of skid-steer and mini-skid-steer loaders as well as attachments, mobile screening plants and six models of mini excavators through a worldwide network of dealers and distributors.
Thomas Equipment Ltd. is a wholly owned subsidiary of McCain Group Ltd. McCain is an international holding corporation focused on the frozen food industry.
For about 40 years, McCain owned and operated Thomas Equipment Ltd. Recently, McCain's board of directors recognized that the Thomas operation was not a core business activity and agreed to divest of these assets.
On November 9, Thomas closed a transaction with Thomas Equipment Inc. f/k/a/ Maxim Mortgage Corp. (OTC BB: TEQI) pursuant to which Thomas became a wholly owned subsidiary of TEQI. The shareholders of Thomas received about 85 percent of the total outstanding shares of TEQI and Laurus Master Fund Ltd. ("Laurus Funds") was issued 9.9 percent of the total outstanding shares of TEQI.
Laurus provided $22 million in financing to TEQI, which included funds for acquisition of Thomas, as well as accounts receivable financing for operations and future activities.
Laurus Funds is a New York City-based institutional fund specializing in providing financing to growing-, small- and micro-capitalization companies. Prior to the closing, TEQI completed a one-for-40 reverse stock split of its outstanding common stock. In addition, the current officers and directors of Thomas assumed similar positions with TEQI.
Laurus Funds helped us take a significant step in advancing our business plan with their financing and this closing, Clifford Rhee, president and director of Thomas and TEQI, said. Fiscal 2004 sales were C$78 million. We are now poised for continued expansion, both through acquisitions and via organic growth. Our mission is to make Thomas a leading international manufacturer in each of its product lines, Rhee said.