Nova plans $20 million investment
July 26, 2004
Filed under Features
Nova Communications Ltd., Torrance, Calif., has entered into a Memorandum of Understanding to close a merger with PowerSki International, the designer and manufacturer of the patented PowerSki Jetboard, and company officials say there are plans to invest up to $20 million in the personal watercraft industry. In other new Nova-related news, the company also entered in to a joint venture with Armor Enterprises, Inc., to develop an electric marine engine.
Funds will come from a financing agreement Nova reached with Dutchess Private Equities Fund, L.P. of Boston, Mass., whereby Dutchess shall invest up to $20,000,000 in Nova Communications through equity transactions in a private equity line of credit, good for 36 months.
Armor Enterprises, Inc., designs, manufactures, and distributes electric battery power drive systems for land and water vehicles. Nova says the deal with Armor will revolve around the development of a new electric powered water pump propulsion system to provide the most efficient and powerful thrust for watercraft vehicles.
Powersports Business last reported on PowerSki International in April, when Owen revealed that he had visited Powerski’s Mexican manufacturing partner, The Hines Group, which was subsequently awarded a three-year $44 million manufacturing job for 20,000 PowerSki Jetboards and 4,000 SuperTorqueXT engines.
Lake Roosevelt Re-Opens To PWC
Officials at the Lake Roosevelt National Recreation Area, located in Washington and Idaho, have completed the required environmental assessments and concluded that PWC are an appropriate boating activity in that location.
The finding comes two years after the National Park Service was required by a court settlement to begin prohibiting PWC pending the results of scientific studies regarding the vessels’ impact. PWC were allowed on the lake as of June 25.
Five additional National Park Service (NPS) units already welcome personal watercraft, eight units are in the final stages of the rulemaking process to reallow the vessels, and scientific analyses on the effects of personal watercraft are currently underway at two National Seashores.
Kawasaki Loans $1 Million in Inventory
Kawasaki’s ultra-successful government loan program, which has put 120 JET SKI watercraft in the hands of police, fire and rescue, and wildlife agencies in 2004, recently hit a retail value benchmark of $1 million.through the loan of four 2004 Kawasaki JET SKI STX-15F watercraft to the Tennessee Wildlife Resources Agency. psb