initial public offering of shares for redline performance products inc

 
Redline Performance Products, Inc. is offering 2,500,000 shares of its common stock. This is the initial public offering, currently no public market currently exists for the shares. All information and quoted source material we have in this article are based on the company's prospectus.

Redline spokesmen state: "We currently anticipate that the initial public offering price will be between $4.00 and $6.00 per share. We have applied to have our shares of common stock approved for listing on the American Stock Exchange under the symbol "RED.''

The Plan

Redline Performance Products, Inc. designs, engineers and markets, and intends to manufacture and sell, snowmobiles under the Redline brand name. The company designed its first model, the 800 Revolt, for trail riding.

"We intend to produce, market and sell the 800 Revolt model, replacement parts and a limited line of Redline branded apparel in the 2003/2004 model year," states the stock prospectus. The suggested retail price of the initial models will be approximately $12,000.

The Redline prospectus outlines the company's plans for the future. "If we are successful with the 800 Revolt, in the following year we intend to market and sell two additional snowmobile models, the 800 Mountain Revolt and the Revolution, accessories, replacement parts and additional items of Redline branded apparel. In the future we intend to expand our snowmobile product line by marketing and selling additional models. We may also expand our product mix by marketing and selling all-terrain vehicles.

"We intend to sell our snowmobiles and related merchandise through independent dealers located throughout the snowbelt region of the United States and Canada."

The information contained in the IPO prospectus notes that Redline has built five functional prototype snowmobiles, and have used that experience to build two more functional prototype snowmobiles using production tooling. Redline is currently producing seven 800 Revolt units using production tooling and expected to sell five of these production snowmobiles to dealers in March/April of 2003 for display and demonstration. The other two production snowmobiles were scheduled to be used for continued performance testing.
The Intended Market

Redline plans to market its snowmobiles primarily in three segments:
High performance - designed for trail riding and emphasize handling and comfort;

Muscle segment - designed for racing and emphasize speed and power.
Mountain - designed for mountain riding and emphasizing power and balance.
Redline explains that it intends to distinguish its snowmobiles from those of other manufacturers based on technologies used in other types of recreational vehicles but which have not yet been used extensively in snowmobiles, as well as our distinctive appearance, styling and brand.

Differentiation of Product

Redline has obtained patents in the U.S. and Canada covering its suspension technology and has applied for patents on its rear exhaust and drivetrain technology. The company believes that, because of its suspension and drivetrain technology, Redline snowmobiles will provide better handling, a smoother ride, more power and greater durability than the snowmobiles of other manufacturers.

"We also believe," states the prospectus, "that the appearance and styling of our snowmobiles, based on our suspension and rear exhaust technology, as well as our Redline brand, will be more appealing to customers than the appearance, styling and brands of other manufacturers."

Although incorporated as a Minnesota company, Redline maintains its principal executive offices at 2510 Commerce Way, Vista, California 92083. For more info, call (760) 599-1003 or check out the website www.redlinesnowmobiles.com.

NOTE: According to independent financial news source, Hoover's Online, The Business Information Authority: Redline Performance Products hopes to send you over the river and through the woods at top speed. A development stage company, Redline plans to market a line of high-end snowmobiles that feature proprietary suspension, exhaust, and drivetrain technologies. Redline's initial model, the 800 Revolt, is slated to hit the powder in the 2003-2004 model year. Other models in Redline's pipeline include the 800 Mountain Revolt and the Revolution. Redline aims to sell its snowmobiles through independent dealers in the US and Canada. The majority of Redline's production will be outsourced to other manufacturers. Founders Kent Harle (CEO) and Chris Rodewald (sales VP), and various other investors, control the company.