Exhibit (a) (7)
FOR IMMEDIATE RELEASE
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Contact Information: |
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D.F. King & Co., Inc.
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Ric DeCastro |
(800) 967-5079
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Investor Relations |
crft@dfking.com
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(972) 393-3800 |
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investorrelations@craftmade.com |
OVERWHELMING MAJORITY OF CRAFTMADES STOCKHOLDERS
REJECT LITEXS TENDER OFFER
Craftmade Board Appreciates Support Shown By Stockholders Throughout Process
COPPELL,
TEXAS, April 9, 2010 Craftmade International, Inc. (OTCQX: CRFT)
(Craftmade or the Company) today announced that it was pleased that the substantial majority of
the Companys stockholders chose not to tender their shares into Litex Industries, Limiteds
(Litex) unsolicited, conditional tender offer. In a press release dated April 8, 2010, Litex
announced that it had received less than 18% of the Companys total outstanding shares. Litexs
hostile tender offer was set to expire on April 7 after having been open for more than a month,
although Litex has now announced an extension.
The tender results announced by Litex represent a decisive rejection by Craftmades stockholders
of Litexs unsolicited offer, stated James R. Ridings, Chairman of Craftmades Board of Directors.
Clearly, the vast majority of our stockholders agree with the Board that this offer is simply
inadequate from a financial perspective, Ridings continued. Our stockholders have shown that
they recognize the strong value proposition in Craftmade shares, and the significant efforts that
we have already implemented to improve financial results.
The Craftmade Board has consistently maintained that Litexs cash tender offer of $5.25 per share
is opportunistic in light of the recent economic downturn and financially inadequate to
stockholders in comparison to Craftmades long-term value.
J. Marcus Scrudder, Craftmades Chief Executive Officer, added, Weve talked with many of our
stockholders, large and small, throughout this process, and we appreciate their support. Our
efforts have already resulted in a substantial improvement in earnings last quarter, and, although
there can be no assurance as to future prospects, there appear to be continuing, positive signs in
the industries we serve. Mr. Scrudder continued, After having more than a month to consider
Litexs proposal, our stockholders have rejected it by an overwhelming margin. We want to thank
our stockholders for their ongoing support and assure them that we continue to manage Craftmade
with their long-term value in mind.
The Craftmade Board continues to encourage all of Craftmades stockholders not to tender their
shares to Litex during the extended offer period. In addition, Craftmade urges its stockholders to
withdraw any previously tendered shares. Stockholders may contact their broker or dealer and
request that any shares already tendered be withdrawn. Stockholders with questions or who need
assistance in withdrawing shares could contact D.F. King & Co., Inc. at 800-967-5079.
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About Craftmade
Founded in 1985, Craftmade is engaged in the design, manufacturing, distribution, and marketing of
a broad range of home décor products, including proprietary ceiling fans, lighting products, and
outdoor furniture. The Company distributes its premium products through a network of independent
showrooms and mass retail customers through its headquarters and distribution facility in Coppell,
Texas and manufacturing plant in Owosso, Michigan. More information about Craftmade can be found
at www.craftmade.com.
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ADDITIONAL INFORMATION
In response to the tender offer commenced by Litex Acquisition #1, LLC, a wholly-owned subsidiary
of Litex, Craftmade filed a Solicitation/Recommendation Statement on Schedule 14D-9, together with
Amendment No. 1 thereto, with the U.S. Securities and Exchange Commission (SEC). INVESTORS AND
SECURITY HOLDERS OF CRAFTMADE ARE URGED TO READ CAREFULLY AND IN THEIR ENTIRETY THESE AND OTHER
DOCUMENTS FILED WITH THE SEC BECAUSE THEY CONTAIN IMPORTANT INFORMATION. Investors and security
holders may obtain free copies of these documents and other documents filed with the SEC by
Craftmade through the web site maintained by the SEC at http://www.sec.gov.
This press release contains statements that are forward looking. These forward-looking statements
include, but are not limited to, (i) statements concerning future financial condition and
operations, including future cash flows, revenues, gross margins, earnings and variations in
quarterly results, (ii) statements relating to future performance and stock price and (iii) other
statements identified by words such as may, will, should, could, might, expects,
plans, anticipates, believes, estimates, projects, predicts, forecasts, intends,
potential, continue, and similar words or phrases. All forward-looking statements are based on
current expectations regarding important risk factors and should not be regarded as a
representation by us or any other person that the results expressed therein will be achieved. The
Company assumes no obligation to revise or update any forward-looking statements for any reason,
except as required by law. Important factors that could cause actual results to differ materially
from those contained in any forward-looking statement can be found in the risk factors section of
our Annual Report on Form 10-K for the fiscal year ended June 30, 2009, filed with the SEC on
September 28, 2009. The Company notes that forward-looking statements made in connection with a
tender offer are not subject to the safe harbors created by the Private Securities Litigation
Reform Act of 1995, as amended.
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