BIG LAKE, Minn., Jan. 17, 2007 (PRIME NEWSWIRE) -- Viper Powersports Inc. (Pink Sheets:VPWS) announced today that it has converted all outstanding debt of approximately $2,800,000 and all outstanding preferred shares totaling $2,153,250 into Viper common shares at a conversion price of $1.25 per common share. The company also has satisfied a requirement to raise an additional $350,000 of equity to effect this conversion, which now leaves the company debt free except for current trade payables and also having capital stock of only common shares.
Viper Powersports Inc. is pleased to announce that Robert Van Den Berg and Duane Peterson have joined the Board of Directors. Mr. Van Den Berg just recently sold Comstrand Inc., a company with $50 million in sales that he started and owned since 1969. Mr. Van Den Berg also has owned and sold several other companies and will bring excellent business and operations background to the Board. Mr. Peterson is a principal CPA and founder of Peterson, Beyenhof & Zahler, Ltd., which was founded in 1978. He has extensive experience in business consulting, tax and financial planning for many corporate and individual clients.
Viper Motorcycle Company, a wholly owned subsidiary, has outsourced all manufacturing to strategic partners to lower the fixed costs of operations and implemented further cost savings, principally in a reduction of headcount, facility fixed costs and marketing programs. Viper Motorcycle Founder and Managing Director John Silseth II stated, "All outsourced manufacturing is now in place as we have commenced production of all components for our Diablo and Diamondback models. After five years of design, development, and testing at a cost of over $20 million, the motorcycles are ready for production and are well worth the wait."
Viper Motorcycle Company's Technical Director, Cory McWhorter, has also assumed the position of President of our subsidiary. Mr. McWhorter replaces Terry Nesbitt, who resigned as President of Viper Motorcycle Company but remains as a Director of Viper Powersports. "We have a lot of hard work ahead of us as we have an ambitious plan to produce two additional models, the Mamba Chopper and a Bagger version of the Diablo later in the year," commented McWhorter. Ryan Hertling has been promoted to National Sales and Service Manager of Viper Motorcycle Company. Mr. Hertling stated, "With GE Financing and Geico Insurance in place, 2007 promises to be an exciting year for our dealers as we deliver our first production motorcycles." Mr. Nesbitt added, "As one of three American OEM's, Viper is in an elite position to separate itself from the custom bike companies."
Viper will display its 2007 Diablo and Diamondback production motorcycles, as well as its 2008 Mamba chopper prototype at the V-Twin Expo by Easyriders in Cincinnati on Feb. 2-5.
About Viper Powersports.
Viper Powersports develops, produces and markets a line of premium custom V-Twin cruiser motorcycles, aftermarket engines and other related aftermarket products. Viper cruisers are distributed and sold under the Viper brand name through a nationwide independent dealer network. The Company designs and manufactures custom motorcycles, accessories and motorcycle engine component parts with patented technology using Computer Aided Design (CAD). Many of the motorcycle and motorcycle engine component parts are machined from solid billets of aluminum utilizing Computer-Numerical-Control (CNC) machines. Viper Powersports website www.viperpowersports.com and Viper Motorcycle website www.vipermotorcycle.com.
The foregoing material may contain forward-looking statements. We caution that such statements may be subject to uncertainties and that actual results could differ materially from the foregoing statements. Readers accordingly should not place undue reliance on these forward-looking statements which do not reflect anticipated or unanticipated events or circumstances occurring after the date of these forward-looking statements.
The Market News First logo is available at http://www.primenewswire.com/newsroom/prs/?pkgid=3162