Navarre Corporation Files Application to Withdraw Registration Statement
MINNEAPOLIS, Feb. 22 /PRNewswire-FirstCall/ -- Navarre Corporation
(Nasdaq: NAVR), a publisher and distributor of a broad range of home
entertainment and multimedia software products, today announced that it has
filed an application with the Securities and Exchange Commission for the
withdrawal of the Registration Statement filed on January 18, 2005
(Registration No. 333-122115). The Company is considering various sources of
financing to fund the initial cash portion of the FUNimation acquisition.
Navarre's President and CEO, Eric Paulson, stated, "The Company continues
to work toward the completion of the agreement to acquire FUNimation and we
expect to complete the transaction as previously announced."
FUNimation's President, Gen Fukunaga, stated, "FUNimation is looking
forward to the combination of the two companies and expects to complete the
transaction prior to May 15, 2005."
About Navarre Corporation
Navarre Corporation (Nasdaq: NAVR) is a publisher and distributor of a
broad range of home entertainment and multimedia products, including PC
software, CD audio, DVD and VHS video, video games and accessories. Since its
founding in 1983, the company has established distribution relationships with
customers across a wide spectrum of retail channels which includes mass
merchants, discount, wholesale club, office and music superstores, military
and e-tailers nationwide. The company currently provides its products to over
18,000 retail and distribution center locations throughout the United States
and Canada. Navarre has recently expanded its business to include the
licensing and publishing of home entertainment and multimedia content,
primarily through the acquisitions of Encore Software, Inc. and BCI Eclipse
Company, LLC. For more information, please visit the company's web site at
http://www.navarre.com .
Safe Harbor
The statements in this press release that are not strictly historical are
"forward looking" statements within the meaning of Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934
and are intended to be covered by the safe harbors created by these sections.
The forward-looking statements are subject to risks and uncertainties and the
actual results that the Company achieves may differ materially from these
forward-looking statements due to such risks and uncertainties, including, but
not limited to: the Company's revenues being derived from a small group of
customers; the Company's dependence on significant vendors; the Company's
dependence upon software developers and manufacturers and popularity of their
products; the Company's ability to maintain and grow its exclusive
distribution business through agreements with music labels; the Company's
dependence upon a key employee and its Founder, namely, Eric H. Paulson,
Chairman of the Board, President and Chief Executive Officer; the Company's
ability to attract and retain qualified management personnel; uncertain growth
in the publishing segment; the acquisition strategy of the Company, including
the successful acquisition and integration of FUNimation, could disrupt other
business segments and/or management; the seasonality and variability in the
Company's business and that decreased sales during peak season could adversely
affect its results of operations; the Company's ability to meet its
significant working capital requirements related to distributing products and
financing accounts receivable; the Company's ability to avoid excessive
inventory return and obsolescence losses; the potential for inventory values
to decline; the Company's credit exposure due to reseller arrangements or
negative trends which could cause credit loss; the Company's ability to
adequately and timely adjust cost structure for decreased demand; the
Company's ability to compete effectively in distribution and publishing, which
are highly competitive industries; the Company's dependence on third-party
shipping of its product; the Company's dependence on information systems;
technological developments, particularly in the electronic downloading arena
which could adversely impact sales, margins and results of operations;
increased counterfeiting or piracy which could negatively affect demand for
the Company's products; the Company may not be able to protect its
intellectual property; interruption of the Company's business or catastrophic
loss at a facility which could curtail or shutdown its business; the potential
for future terrorist activities to disrupt operations or harm assets; the
FUNimation acquisition may not be completed; significant Company stock
volatility; the exercise of outstanding warrants and options adversely
affecting stock price; investors experiencing immediate and substantial
dilution in net tangible book value per share of common stock purchased in the
offering; the Company's anti-takeover provision, its ability to issue
preferred stock and its staggered board may discourage take-over attempts
beneficial to shareholders; because the Company does not intend to pay
dividends, stock appreciation may yield the only return on an investment in
Company stock; and the Company's directors may not be personally liable for
certain actions which may discourage shareholder suits against them. A
detailed statement of risks and uncertainties is contained in the Company's
reports to the Securities and Exchange Commission, including in particular the
Company's Form 10-K for the year ended March 31, 2004. Investors and
shareholders are urged to read this document carefully. Investors and
shareholders are urged to read this document carefully. The Company can offer
no assurances that any projections, assumptions or forecasts made or discussed
in this release, "NAVARRE CORPORATION FILES APPLICATION TO WITHDRAW
REGISTRATION STATEMENT", dated February 22, 2005, will be met, and investors
should understand the risks of investing solely due to such projections. The
Company undertakes no obligation to revise any forward-looking statements in
order to reflect events or circumstances that may arise after the date of this
press release.
Investors and shareholders may obtain free copies of the Company's public
filings through the website maintained by the SEC at http://www.sec.gov or at
one of the SEC's other public reference rooms in New York New York or Chicago,
Illinois. Please call the SEC at 1-800-SEC-0330 for further information with
respect to the SEC's public reference rooms. Free copies of these documents
may be obtained by contacting Kathy Conlin at 763-535-8333.
(Nasdaq: NAVR), a publisher and distributor of a broad range of home
entertainment and multimedia software products, today announced that it has
filed an application with the Securities and Exchange Commission for the
withdrawal of the Registration Statement filed on January 18, 2005
(Registration No. 333-122115). The Company is considering various sources of
financing to fund the initial cash portion of the FUNimation acquisition.
Navarre's President and CEO, Eric Paulson, stated, "The Company continues
to work toward the completion of the agreement to acquire FUNimation and we
expect to complete the transaction as previously announced."
FUNimation's President, Gen Fukunaga, stated, "FUNimation is looking
forward to the combination of the two companies and expects to complete the
transaction prior to May 15, 2005."
About Navarre Corporation
Navarre Corporation (Nasdaq: NAVR) is a publisher and distributor of a
broad range of home entertainment and multimedia products, including PC
software, CD audio, DVD and VHS video, video games and accessories. Since its
founding in 1983, the company has established distribution relationships with
customers across a wide spectrum of retail channels which includes mass
merchants, discount, wholesale club, office and music superstores, military
and e-tailers nationwide. The company currently provides its products to over
18,000 retail and distribution center locations throughout the United States
and Canada. Navarre has recently expanded its business to include the
licensing and publishing of home entertainment and multimedia content,
primarily through the acquisitions of Encore Software, Inc. and BCI Eclipse
Company, LLC. For more information, please visit the company's web site at
http://www.navarre.com .
Safe Harbor
The statements in this press release that are not strictly historical are
"forward looking" statements within the meaning of Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934
and are intended to be covered by the safe harbors created by these sections.
The forward-looking statements are subject to risks and uncertainties and the
actual results that the Company achieves may differ materially from these
forward-looking statements due to such risks and uncertainties, including, but
not limited to: the Company's revenues being derived from a small group of
customers; the Company's dependence on significant vendors; the Company's
dependence upon software developers and manufacturers and popularity of their
products; the Company's ability to maintain and grow its exclusive
distribution business through agreements with music labels; the Company's
dependence upon a key employee and its Founder, namely, Eric H. Paulson,
Chairman of the Board, President and Chief Executive Officer; the Company's
ability to attract and retain qualified management personnel; uncertain growth
in the publishing segment; the acquisition strategy of the Company, including
the successful acquisition and integration of FUNimation, could disrupt other
business segments and/or management; the seasonality and variability in the
Company's business and that decreased sales during peak season could adversely
affect its results of operations; the Company's ability to meet its
significant working capital requirements related to distributing products and
financing accounts receivable; the Company's ability to avoid excessive
inventory return and obsolescence losses; the potential for inventory values
to decline; the Company's credit exposure due to reseller arrangements or
negative trends which could cause credit loss; the Company's ability to
adequately and timely adjust cost structure for decreased demand; the
Company's ability to compete effectively in distribution and publishing, which
are highly competitive industries; the Company's dependence on third-party
shipping of its product; the Company's dependence on information systems;
technological developments, particularly in the electronic downloading arena
which could adversely impact sales, margins and results of operations;
increased counterfeiting or piracy which could negatively affect demand for
the Company's products; the Company may not be able to protect its
intellectual property; interruption of the Company's business or catastrophic
loss at a facility which could curtail or shutdown its business; the potential
for future terrorist activities to disrupt operations or harm assets; the
FUNimation acquisition may not be completed; significant Company stock
volatility; the exercise of outstanding warrants and options adversely
affecting stock price; investors experiencing immediate and substantial
dilution in net tangible book value per share of common stock purchased in the
offering; the Company's anti-takeover provision, its ability to issue
preferred stock and its staggered board may discourage take-over attempts
beneficial to shareholders; because the Company does not intend to pay
dividends, stock appreciation may yield the only return on an investment in
Company stock; and the Company's directors may not be personally liable for
certain actions which may discourage shareholder suits against them. A
detailed statement of risks and uncertainties is contained in the Company's
reports to the Securities and Exchange Commission, including in particular the
Company's Form 10-K for the year ended March 31, 2004. Investors and
shareholders are urged to read this document carefully. Investors and
shareholders are urged to read this document carefully. The Company can offer
no assurances that any projections, assumptions or forecasts made or discussed
in this release, "NAVARRE CORPORATION FILES APPLICATION TO WITHDRAW
REGISTRATION STATEMENT", dated February 22, 2005, will be met, and investors
should understand the risks of investing solely due to such projections. The
Company undertakes no obligation to revise any forward-looking statements in
order to reflect events or circumstances that may arise after the date of this
press release.
Investors and shareholders may obtain free copies of the Company's public
filings through the website maintained by the SEC at http://www.sec.gov or at
one of the SEC's other public reference rooms in New York New York or Chicago,
Illinois. Please call the SEC at 1-800-SEC-0330 for further information with
respect to the SEC's public reference rooms. Free copies of these documents
may be obtained by contacting Kathy Conlin at 763-535-8333.
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