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[MBf USA, INC. LETTERHEAD]
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Exhibit - 7(a)
FOR IMMEDIATE RELEASE
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MBf USA RECEIVES $6.75 MILLION CAPITAL INFUSION
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WEMBLEY COMPLETES PURCHASE OF MBf USA CLASS A COMMON STOCK
AND 2.5 MILLION UNREGISTERED SHARES OF CLASS B COMMON STOCK
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Itasca, Illinois - April 1, 1998 -- MBf USA, Inc. (The Nasdaq SmallCap Stock
Market Symbol MBFA) (the "Company") and its subsidiary, American Health
Products Corporation ("AHPC"), today announced MBf International, Ltd. ("MBf
International") sold all of its MBf USA's Class A Common Stock to Wembley
Rubber Products (M) Sdn. Bhd. ("Wembley"), the largest Malaysian powder-free
glove manufacturer and principal supplier of the Company's powder-free latex
glove business.
As per the previously announced May 1997 Sale and Purchase agreement, Wembley
has purchased 1,252,538 shares of MBf USA's Class A Common Stock from the
Company's former majority shareholder, MBf International, at $5.00 per share
for a value of $6.27 million. MBf International will retain its 1,682,275
shares of Class B Common Stock of the Company. Simultaneously, Wembley
purchased 2,500,000 new unregistered shares of MBf USA's Class B Common Stock
at $2.70 per share, which carry demand registration rights. As a result,
Wembley now holds 55% of the Company's Common Stock. MBf USA received $6.75
million in proceeds which will be applied toward working capital to expand
market share, introduce new products, reduce debt and introduce advanced
technologies to the Company's 70% owned latex glove manufacturing factory in
Indonesia. The Company has received a fairness opinion from the Xxxxxxxx Group
supporting this transaction.
(continued)
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MBf USA, Inc. News Release Page 2
April 1, 1998
Xxxxxx X. Xxxxxxx, President of the Company said, "Wembley's investment in AHPC
demonstrates its confidence and commitment to support faster glove sales. The
aggressive sales and marketing team at American Health Products Corporation
will benefit from Wembley as one of the largest powder-free glove producers in
Malaysia. The $6.75 million capital injection enables AHPC to increase further
its manufacturing technologies at our Indonesian glove plant and thereby
benefit from the growing demand for powder-free gloves."
Xxxxxxx Xxxx Xxxx Xxx, President & CEO of Wembley commented, "Wembley's main
business is manufacturing and marketing "Gloves For All Reasons" - medical,
retail, food, industrial, and specialty. Increased resources channeled to
Research and Development, further improvement in glove technology and wide
product offering should accelerate AHPC's growth and increase its margins."
This press release contains forward looking statements which involve numerous
risks and uncertainties. The Company's actual results could differ materially
from those anticipated in such forward looking statements as a result of
certain factors, including those set forth in the Company's filings with
Securities and Exchange Commission.
MBf USA, Inc. and its subsidiaries market Glovetex brand and OEM medical
examination gloves in the United States.
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CONTACT: or- MBf USA's INVESTOR RELATIONS COUNSEL:
MBf USA, Inc. The Equity Group Inc.
Xxxxxx X. Xxxxxxx, President Xxxxx Xxxxxxxx (000) 000-0000
Xxxxxxx Xxx, Chief Financial Officer Xxxxx Xxxxxx (000) 000-0000
T: (000) 000-0000
F: (000) 000-0000
