NEW LONDON, Conn., April 25, 2011 (GLOBE NEWSWIRE) -- Evercel, Inc. (Pink Sheets: EVRC) today released a letter to shareholders that discusses the company's recent sale of a portion of its Zipcar shares, as well as future plans:
Dear Fellow Shareholder:
Evercel, Inc. sold 350,000 shares of Zipcar, Inc (NASDAQ: ZIP) in Zipcar’s recent initial public offering of stock. We currently own 1,078,571 shares which largely cannot be sold until mid-October of 2011.
We received net proceeds of $5,859,000. After paying all of our indebtedness we expect to have approximately $4,500,000 of cash available beyond what we need to run our operations.
Many shareholders have asked about our plans for this "excess" liquidity. Your Board of Directors, having deliberated several methods of either distributing this capital or deferring distribution while we attempt to capitalize on our strengths, has decided to defer distribution for now.
Our strengths as we see them are:
1- Cash plus further substantial realization of cash in the future sale of more Zipcar shares.
2- A net operating loss carryforward for Federal income tax purposes of approximately $50 million minus the proceeds of the sale referenced above as well as further sales.
3- Evercel, Inc. currently has publicly traded shares and can re-register with the SEC and become a fully reporting company.
Our intention is to buy or more likely merge with a company that is financially attractive, has a promising future, and can enhance both our values by using our strengths.
Needless to say, there is no assurance that we can find or successfully consummate a transaction with such a company. Nor do we expect, despite the manifest patience of our shareholders so far, to carry on this search indefinitely. We have therefore set a goal of December 2012 to either consummate a transaction or distribute "excess" cash.
We encourage any and all suggestions from shareholders in this pursuit.
James D. Gerson, Chairman
Garry A. Prime, Chief Executive Officer
New London, Conn., based Evercel is a multi-industry company whose operations include crab processing for both fresh and frozen markets, sales of Swivel Y-valves used in the treatment of patients on respirators, and Stretch and Cover, Inc., an on-line retailer of slipcovers for household furniture. Evercel also has investments in Zipcar Inc. (car sharing), and Julia LLC (skin wrinkle reduction technology).