| Deal Description | AVM Corporation added the net proceeds from this deal to the company's general funds. A portion of the proceeds was used to retire revolving credit bank borrowings, which totaled $800,000 as of December 31, 1968. The company anticipated using additional proceeds to fund an increase in the manufacturing of its voting machines in the year 1969. AVM expected to increase its inventories of voting machines that year by approximately $750,000 to meet an anticipated demand for the products in 1970, a presidential election year. The company noted that the voting machine industry historically experienced a four-year cycle of sales, with the largest volumes occurring in presidential election years. The requirements of increased inventories, together with budgeted capital expenditures in certain other lines to meet customer demands, the retirement of long-term debt, and possible future acquisitions for cash were expected to be met by the balance of the net proceeds from the sale of the shares offered in this deal, the reinvestment of the major portion of earnings and depreciation, and the proceeds of future bank borrowings under the existing revolving credit line. |
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