Here's the a copy of the letter to West 49 from Adrenalina in the states. The new face of boardsports shows itself in the news again.
May 4, 2009
Kenneth Fowler
West 49 Inc.
1100 Burloak Drive200,
Burlington, Ontario
L7L 6B2
Dear Kenneth:
I am writing as Chairman and Chief Executive Officer of Adrenalina to propose a combination of our companies in a negotiated transaction that provides for the purchase by Adrenalina of all issued and outstanding shares of common stock of West 49 Inc. ("WEST49") for a payment of 0.55 Canadian Dollars per share, consisting of a combination of cash and stock of Adrenalina. The transaction will require the approval of the Board of Directors of WEST49 (WXX.to).
We are confident that this transaction will create value for WEST49 shareholders well in excess of that which can be achieved by your company proceeding on its own. Not only does the proposed acquisition price represent a premium to the current price of WEST49 shares, but the stock structure of the transaction would allow your shareholders to participate in the future growth and performance of the energized
combined companies. In addition, the business synergies from combining WEST49's substantial store footprint with Adrenalina's high-growth lifestyle retailing concept are compelling -- all the more so in this challenging economic environment.
Completion of the proposed transaction is anticipated to occur no later than August 2009 and is subject to customary conditions, including satisfactory completion of our due diligence, the execution of a definitive agreement between the two companies and completion of the funding, which we do not expect to present a problem.
The power of Adrenalina's retailing concept in today's market
WEST49 would benefit greatly from the application of our proven entertainment retailing concept, which we believe will re-energize the performance of your stores.
Adrenalina stores are becoming a destination of choice for generation Y and Z'ers. Major landlords continue to approach us with a wide variety of proposals in the best retail centers across the nation. All our future store buildouts of $2,000,000 are entirely paid by tenant allowances. The Company's leasing team is constantly researching and evaluating new locations in the most important markets and busiest malls throughout the US.
The stores are designed and positioned as a focal point for extreme sport enthusiasts of all generations and those who want to learn more about this Lifestyle. In this regard, the store offers dedicated areas which are focused on a particular extreme sport, and the coordination of FlowRider® sessions and lessons with qualified instructors, all with the intent of promoting the Adrenalina stores as the place to go, congregate and be seen for all who are interested in extreme sports and its Lifestyle.
Synergistic opportunities
We see many synergies between Adrenalina and WEST49, and we welcome you to consider some of them:
More than 1,000,000 people go through each Adrenalina store per year, vendors want to be in Adrenalina. Because of this great visibility we are able to market specific deals with national suppliers.
Exponential business revenue and profit growth: Adrenalina is in expansion mode, and it has a long way to go before saturating the market. This provides WEST49 with a tremendous new
business growth path that will enhance the overall growth rate of WEST49. Furthermore because of WEST49's operational efficiencies of current infrastructure, purchasing power and back end operations, Adrenalina stores could leverage the backbone of WEST49 and open stores at a faster rate. The combined company could take meaningful advantage of landlords seeking Adrenalina stores.
In conclusion, combining with Adrenalina will achieve that trendsetter goal, drive revenue and improve profitability. The Adrenalina traffic level is highly coveted by suppliers, in conjunction with WEST49, this will drive considerable visibility to the combined company and ensure our success.
We urge your Board of Directors to seriously consider this proposal and would welcome the opportunity to meet with your Board to explore further. Please get back to me to schedule a
meeting. You may reach me on my cell phone at (786) 877-5521 or by email
ilia@adrenalina.tv.
Very truly yours,
Ilia Lekach