Verit Sells Control in Return for Stock
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Verit Industries has agreed to give control of the company to the chairman of Iroquois Brands Ltd. and other investors in exchange for getting 53% of Iroquois’ stock.
Verit, formerly a loudspeaker manufacturer in Sun Valley, no longer has operating divisions and is a shell company that has moved to Los Angeles. Its main asset is about $1 million in cash. Houston-based Iroquois makes industrial power tools and other products.
Under the deal, expected to be completed next week, Verit will acquire the Iroquois stock from Iroquois Chairman Malcolm H. Stockdale and other individual investors. The investors, in turn, will get newly issued Verit preferred stock that is convertible into Verit common shares, and Stockdale alone will control 70% of Verit, he said.
Stockdale, who also will become Verit’s chairman, said he plans to use Verit as a vehicle for making investments in other companies.
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