SALT LAKE CITY, June 2 /PRNewswire/ -- Franklin Covey Co. (NYSE: FC)
announced today that it had completed the previously announced placement of
$75 million of 10% preferred stock to Knowledge Capital Investment Group, a
private investment firm. The preferred stock is convertible into common stock
at $14 per share and callable in certain circumstances after five years.
"The large size and strong growth rates of the training industry, together
with Franklin Covey's already strong market position and brands, provide
Franklin Covey the opportunity to grow rapidly in both domestic and
international markets," said Jon H. Rowberry, Chief Executive Officer of
Franklin Covey. "This transaction is an important step toward that objective.
We intend to invest profitably in our core business and in developing new
delivery channels, new content and new products and entering new markets to
achieve this growth."
As previously announced, Franklin Covey intends to offer to its existing
stockholders the opportunity to purchase up to $75 million of convertible
preferred stock having the same terms as the preferred stock purchased by
Knowledge Capital. The offering will be made only by means of a prospectus
and is expected to be made later this year after a registration statement has
been filed with, and been declared effective by, the Securities Exchange
Commission.
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.
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.
SOURCE Franklin Covey Co.
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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,
John L. Theler, Chief Financial Officer, or Richard R. Putnam,
Investor Relations, all of Franklin Covey Co., 801-975-1776
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