Global Entertainment Corporation Completes Merger With Cragar Industries, Inc.
19 März 2004 - 7:52PM
PR Newswire (US)
Global Entertainment Corporation Completes Merger With Cragar
Industries, Inc. PHOENIX, March 19 /PRNewswire-FirstCall/ --
Richard Kozuback, President and Chief Executive Officer of Global
Entertainment Corporation, a private company, and Michael
L.Hartzmark, Ph.D., Chairman and Chief Executive Officer of Cragar
Industries, Inc. (BULLETIN BOARD: CRGR) , jointly reported that the
previously announced merger between the two companies was approved
by the stockholders of Cragar at a Special Meeting of Stockholders
held today, March 19, 2004. As a wholly-owned subsidiary of Global,
Cragar's marketing focus will target consumer groups
demographically similar to the target audience for Global's markets
in which franchises operate for the Central Hockey League (CHL) and
the WPHL. Currently there is no established public trading market
for Global Entertainment's common stock; however, Global will cause
an application to be filed to have its common stock declared
eligible for quotation on the OTC Bulletin Board and expects to
file periodic and other reports and information with the Securities
and Exchange Commission. Cragar's common stock has traded on the
Over-The-Counter Bulletin Board and is in the process of being
delisted. James Treliving, Chairman of the Board of Global
Entertainment commented, "Cragar is a perfect strategic fit for
Global and positions us for the next step in being a public
company. We welcome Michael Hartzmark and Mark Schwartz as new
members of our board of directors. Dr. Hartmark's thorough
understanding and respect for the CRAGAR brand plus the leadership
and vision he and Mark bring to Global's board are valuable
additions to our company." Dr. Hartzmark stated, "From the start of
discussions with Global and Rick Kozuback in late 2002 I felt that
Global had a wonderful strategic vision along with the people
required to implement and execute it. Over the past year as I have
had the opportunity to get to know the board members, management
and others in the organization, I have grown even more excited
about the prospects of Cragar becoming part of this innovative and
exciting business." Mr. Kozuback said, "The highly regarded CRAGAR
brand adds a new dimension to our licensing strategy and presents
an outstanding opportunity to diversify our revenue stream. We're
excited to introduce CRAGAR branded products to our audiences
developed in conjunction with our licensing programs with the CHL.
We plan to take the CRAGAR brand well beyond its current position
within the automobile aftermarket." Phoenix-based Miller Capital
Corporation, a part of The Miller Group, acted as financial advisor
to Cragar Industries in the transaction and will remain involved as
an advisor with the merged entity. Global Entertainment is a
diversified sports management, arena development and licensing
company with four subsidiaries. The Western Professional Hockey
League, Inc., through a joint operating agreement with the Central
Hockey League (CHL), is the operator and franchisor of professional
minor hockey teams in eight states. International Coliseums Company
designs, manages the construction of and acts as facility manager
for multipurpose sports and entertainment arenas with an average
seating capacity of 5,400 in mid-market communities. Global
Entertainment Marketing Systems handles all licensing and marketing
operations including acting as licensor for Cragar Industries,
Inc.'s nationally recognized CRAGAR(R), TRU=SPOKE(R), CRAGAR S/S(R)
and STREET PRO(R) branded products. This press release includes
statements that constitute "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995
(the "Reform Act") and Cragar and Global Entertainment claim the
protection of the safe-harbor for forward-looking statements
contained in the Reform Act. These forward-looking statements are
often characterized by the terms "may," "believe," "potential,"
"intend" or "expected," and do not reflect historical facts.
Specific forward-looking statements contained in this press release
include, but are not limited to those that relate to consummation
of the merger and the expected benefits of the merger, including
the expectation of a strategic fit between Cragar and Global
Entertainment, together with any other statements that are not
historical. These statements are based on management's current
expectations and involve risks and uncertainties. Cragar and Global
Entertainment wish to caution the reader that various factors
couldcause actual results to differ materially from the
expectations described in the forward-looking statements.
Cautionary Statement Other factors that may affect forward-looking
statements and the combined company's business generally include
the following: -- Global Entertainment's inability to integrate
Cragar into its operations; -- Global Entertainment's inability to
revitalize or further develop the CRAGAR name; -- A downturn in the
sports entertainment industry or the automotive products markets;
and -- Risk factors and cautionary statements made in the S-4
Registration Statement of Global Entertainment and Cragar's Annual
Report on Form 10-K for the period ended December 31, 2002.
Forward-lookingstatements speak only as of the date the statement
was made. Cragar and Global Entertainment do not undertake and
specifically decline any obligation to update any forward-looking
statements. DATASOURCE: Cragar Industries, Inc. CONTACT: Richard
Kozuback, President & CEO of Global Entertainment Corporation,
+1-480-949-8600; or Michael L. Hartzmark, Ph.D., Chairman & CEO
of Cragar Industries, Inc., +1-480-947-2627; or Rudy R. Miller,
Chairman & CEO of The Miller Group, +1-602-225-0504
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