Lehman Trikes eye financing U.S. facility
May 5, 2004
Filed under Features
Lehman Trikes Inc., the Canada-based supplier of three-wheeled motorcycles and conversion services, is considering expanding operations in the U.S., but said it must first raise additional capital.
Lehman said it plans a private placement equity financing of up to 3,750,000 units, each unit to consist of one common share and one share purchase warrant. Based in Westlock Alberta, Lehman manufactures kits to convert conventional two-wheeled motorcycles into three-wheel motorcycles. The company also assembles and sells complete trikes.
Proceeds from the private placement combined with a proposed debt financing will be used for working capital purposes and possibly to finance the costs of establishing an expansion facility in the United States, Lehman said in a prepared statement.
While Lehman has declined to identify the city with which it’s working, Powersports Business has learned that negotiations have been on-going with community leaders in Spearfish, S.D.
The Spearfish City Council is offering Lehman a $300,000 loan, provided by the Spearfish Economic Development Corporation.
According to the Black Hills Pioneer newspaper, the Council also approved a five-year exclusive option for the company to purchase an extra three acres in the Spearfish Industrial Park.
Lehman, in its statement, said no other financing arrangements are in place, adding that, “This entire initiative is subject to completing sufficient equity and debt financing.”
Established in 1984 when John Lehman built his first trike, Lehman runs a 30,000 sq. ft. facility in Westlock, Alberta, Canada.
The firm is led by John Lehman, founder and senior vice president; Larry Strilchuk, president and CEO; Garth Sinclaire, vice president finance, operations and CFO; and Darlene Pysyk, vice president marketing, sales and distribution.
The company has more than 130 factory authorized dealers for its motorcycles in North America, Europe, Japan and Australia.