Dickie Walker presents update on agreement with Intelligent Energy

08 Nov '05

2 min read

Marine clothing, including custom embroidery store Dickie Walker Marine Inc provided an update on the previously announced mutual release agreement between Dickie Walker and Intelligent Energy Holdings Plc and management's future business plans.

As disclosed in the press release and the Form 8-K filing of October 14, 2005, Dickie Walker and Intelligent Energy agreed to terminate the Acquisition Agreement dated February 3, 2005. The mutual release agreement was contingent upon receipt of a cash payment by Intelligent Energy to Dickie Walker of $500,000. Payment was received on November 1, 2005.

'While they are pleased to have received the settlement payment,' said Jerry Montiel, Chairman and Chief Executive Officer of Dickie Walker, 'the extended period of time over which the proposed merger unraveled caused a serious loss of momentum for their business. In anticipation of closing the transaction with Intelligent Energy, they shifted their focus away from growing their business.

They suspended their efforts to build their direct sales business, reduced staff, halted sales, marketing and product development efforts, and stopped accepting new accounts. Additionally, they incurred significant costs, and management had to divide its time between managing the business and managing the transaction.

At this point in time, it is highly unlikely that they will be able to revive the business with their limited resources. Consequently, they have made the decision to exit the business theirselves and attempt to sell the Dickie Walker brand to a company with greater resources to carry it forward.'

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