CFM Majestic Announces Plans to Examine Strategic Alternatives
MISSISSAUGA, ONTARIO – The Board of Directors of CFM Majestic Inc. (TSE Symbol CFM) announced today that it has engaged Berenson Minella & Company, a New York-based investment and merchant banking firm, to advise the Company on examining a variety of strategic alternatives for creating shareholder value which may include the outright sale of the Company. Other options being considered include a merger, a major acquisition or a re-capitalization of the Company.
"We believe that the current market price for CFM’s shares does not properly reflect the Company’s true value and future prospects. Accordingly, we are examining a number of options to increase value for our shareholders. The Board of Directors has directed the Company to engage in discussions with parties who have an interest in developing upon the success the Company has achieved," said Colin Adamson, Chairman and Chief Executive Officer of CFM.
The Company can give no assurance as to its success in pursuing any of the strategic alternatives or as to the terms of any transaction.
CFM Majestic Inc. is a leading vertically integrated manufacturer of gas and wood-burning fireplaces, free standing stoves and other hearth products in North America and the United Kingdom. The Company designs, develops, manufactures and distributes a complete line of hearth products, including gas and wood-burning fireplaces, free-standing stoves, gas logs, hearth accessories, indoor and outdoor space heaters and a growing number of outdoor leisure products, and maintains an ongoing program of research and development aimed at continually improving the quality, design, features and efficiency of its products.
This press release contains forward looking statements that involve certain risks and uncertainties which could cause actual results to differ materially from future results expressed or implied by such forward looking statements. Important factors that could affect these statements include, without limitation, general economic conditions, consumer confidence and the level of housing starts, the Company’s ability to develop new products, the seasonality of the demand for the Company’s products, competition, and foreign currency fluctuations. These factors and other risks and uncertainties are discussed in the reports and disclosure documents filed by the Company with Canadian and U.S. securities regulatory authorities and commissions.