AUBURN, Ala. – Viper Motorcycle Co. will revise its pricing structure, and says that Terry Nesbitt has rejoined the manufacturer as president.
CEO John Silseth today released the following open letter to the company’s shareholders:
Although 2012 was a difficult year for us, the company is now well positioned for future success. We are optimistic that our pending 2013 introduction of new motorcycle models will complete our transformation into a sustainable American motorcycle enterprise.
Our carefully selected 2013 Diamondback Dealers have uniformly agreed that the Diamondback is an exceptional motorcycle, although they are concerned that our manufacturers suggested retail price (MSRP) is too high to realize a sustainable volume business. Management has acknowledged this matter and is formulating a revised pricing schedule. We currently are on schedule to complete our 2013 Black Diamond Edition production through April.
We are pleased to announce Terry Nesbitt has re-joined us as president of Viper Motorcycle Co. Terry's main focus will be to concentrate on developing a quality dealer network and work with the motorcycle enthusiast media in order to get us back in their publications. He has an extensive background in the powersports industry including working with Kawasaki in sales and marketing as well as a long career with Polaris/Victory as a district, regional and national sales manager. Terry developed the initial Victory motorcycle dealer network before leaving the company after the better part of 20 years. His previous experience with Viper and product knowledge will be helpful as we launch and continue to develop new products. According to Terry, "I'm glad to return and be in a position to help develop the dealer network. It's an exciting time especially as we're introducing 'Project Mamba.' This will give us an opportunity to compete in a different segment of the market, greatly enhancing our overall value."
We believe that our "Project Mamba" will produce an exciting future of our Company. This key Viper project features two all new premium motorcycles which have been developed with our GT-1 Joint Venture Partners. Our wholly owned subsidiary, PMFR Inc., is currently developing a NHRA Viper Pro Stock Motorcycle racing chassis based upon Project Mamba. PMFR will also serve as the aftermarket distributor of our GT-1 JV performance parts as well as a vertical manufacturer for the production motorcycles.
We have achieved or established other notable marketing milestones for 2013. We recently entered into an agreement with GE Capital, which enables us to provide wholesale floor plan financing to qualified Viper dealers. We recently received Single Vehicle Approval (SVA) with our Diamondback motorcycle in the UK, and anticipate sending our first commercial shipment to the UK in the first quarter of 2013. Domestically, our goal for the first quarter of 2013 is to sign ten Viper dealers and deliver motorcycle products to an expanded network of first class dealerships in the US.
Regarding our innovative and powerful V-Twin engine, during the final quarter of 2012, we entered into a five-year extension of our development/manufacturing contract with Ilmor Engineering for future commercial production of the Viper-Ilmor engine. In order to expedite a substantial cost reduction program, we also prepaid Ilmor $1 Million for production engines.
As for our public company status, during the last quarter of 2012, the Depository Trust Company (DTC) imposed a Deposit Chill for our common stock, which temporarily has limited our shareholders' ability to effectively trade their common shares. We have engaged an experienced independent legal counsel to provide necessary legal opinions to DTC to cure this Deposit Chill. Our counsel has submitted these legal opinions to the DTC, and we are optimistic for a timely and successful resolution to this matter.
The company has retained an experienced, recognized Investment Banker to review our capital structure with the goal of maximizing shareholder value and providing a long term capital solution to support the company's strategic plans. This quarter's objectives will include working with independent research analysts to track and report the company information related to our new product launch program, and the expectations of current and prospective shareholders.
We thank all Viper shareholders for your continued patience and support.
Posted by Holly Wagner