ForeFront Holdings, Inc. has entered in the beginning of January into a series of agreements concerning its business of manufacturing and marketing of golf accessory products, to a ForeFront's wholly-owned subsidiary, Forefront (BVI) Ltd., newly incorporated under the law of the British Virgin Islands. The agreements will provide for the contribution of the business to the above-mentioned BVI company, and its sale, subject to shareholder approval, to Stanford Venture Capital Holdings, Inc. The purchase price for the sale of Forefront's golf accessories business to Stanford Venture will be company's cancellation of all debt owed to it by Forefront as of the closing of the transactions (about $16 mln).
By the agreement, immediately after sale of its golf accessories business Forefront will acquire the optical transceiver business and the contract rights, customer lists, intellectual property and other intangibles necessary to allow Forefront (BVI) Ltd. to continue the broadband multimedia technologies for digital home applications business of various subsidiaries of Ligent International, Inc. and Hisense, Co. Ltd., major Chinese electronics manufacturer. The company will focus on the convergence of these broadband multimedia technologies to provide expanded high definition service to the consumer at reduced costs.
ForeFront also has entered into agreement to receive equities in an amount equal to $12 million from Stanford International Bank, an affiliate of Stanford Venture Capital Holdings that currently holds approximately 80% of Forefront's outstanding common stock. In connection with these transactions, Forefront will re-domicile in the British Virgin Islands, into ForeFront (BVI) Ltd.
Upon conclusion of the above transactions, current stockholders of Forefront Holdings, excluding Stanford Venture Capital Holdings and Stanford International Bank, will hold 1.8% of the outstanding common stock of Forefront (BVI) Ltd. The transferors of the optical transceiver and broadband multimedia technologies will get 80%; Stanford will hold 18.2% of Forefront (BVI) Ltd's outstanding common stock.
