SALT LAKE CITY, May 12 /PRNewswire/ -- Franklin Covey (NYSE: FC) announced
today that the Company has entered into a definitive agreement providing for
the issuance of $75 million of 10% preferred stock to Knowledge Capital
Investment Group, a private equity investor. The preferred stock is
convertible into common stock at $14 per share and callable in certain
circumstances after five years. The transaction is expected to be completed
later this month.
Jon H. Rowberry, Franklin Covey's Chief Executive Officer, said, "As we
look at our industry over the next five years, we see significant
opportunities to develop new products and delivery channels to meet the
changing needs of our customers. As we seek to become an industry leader in
electronic solutions for personal and organizational effectiveness, we
anticipate the need to develop and/or acquire additional capabilities.
Although we believe we have the industry's best effectiveness content,
learning processes and implementation tools, we will need to be able to
deliver them in new ways to compete in the developing world of e-commerce and
web-based solutions. Raising capital at this time gives us the means to
pursue that objective."
Robert A. Whitman, Chief Executive Officer of the private investor, will
become the Chairman of the Board of the Company and Hyrum W. Smith and Stephen
R. Covey will become Vice Chairmen of the Board. Messrs. Covey, Smith and
Whitman have all been members of the Board of Directors of the Company or its
predecessors for more than five years.
Franklin Covey also announced that it intends to offer to its existing
stockholders the opportunity to purchase up to $75 million of convertible
preferred stock having identical terms to the preferred stock purchased by
Knowledge Capital Investment Group. The offering will be made only by means
of a prospectus and is expected to be made later this summer after a
registration statement has been filed with, and been declared effective by,
the Securities and Exchange Commission.
The statements contained in this release which are not historical facts,
such as those concerning proposed transactions, are forward-looking statements
that are subject to known and unknown risks and uncertainties that may cause
actual results to differ materially from those expressed or implied by such
forward-looking statements and should be read in conjunction with the
Company's filings with the SEC.
Franklin Covey provides solutions to help individuals and organizations
use proven principles to increase personal and organizational leadership
effectiveness, trust, and productivity. It trains approximately 750,000
people each year. More than 17.5 million people now use its planners, agendas
and electronic solutions. Franklin Covey has more than 15 million books in
print with more than 1.5 million being sold each year, including Stephen
Covey's, The 7 Habits of Highly Effective People. The Company has 125 retail
stores throughout the U.S. which provide individuals, families and
organizations tools for effective living.
Franklin Covey's Franklin Planner Software is available through major
computer retailers, the 125 Franklin Covey retail stores, and Franklin Covey's
direct sales team, catalogs and online store (http://www.franklincovey.com).
SOURCE Franklin Covey Co.
 back to top
Related links:
http://www.franklincovey.com
Company News On-Call:
http://www.prnewswire.com/comp/107086.html or fax,
800-758-5804, ext. 107086
CONTACT:
Jon H. Rowberry, Chief Executive Officer, or
John L. Theler, Chief Financial Officer, or Richard R. Putnam,
Investor Relations, all of Franklin Covey Co., 801-975-1776
|
