LOS ANGELES, Jan. 17, 2007 (PRIME NEWSWIRE) -- Tank Sports, Inc. (OTCBB:TNSPE) today announced that Laguna Research Partners LLC has released an Update Report and Summary Update Report providing its analysis of the proposed merger between Tank Sports and LowPrice.com, Inc., an Arizona corporation d/b/a Redcat Motors. Redcat is a power-sports equipment importer and distributor headquartered in Phoenix, Arizona whose business mainly focuses on off-road power-sports equipment.
Ms. Jing Jing Long, Chief Executive Officer of Tank Sports, stated, "We are excited about the tremendous growth opportunities for Tank Sports in the worldwide power-sports market. Since our company's founding in 2001, customer reaction to our line of cutting-edge motorcycles and all-terrain vehicles has been overwhelmingly positive." She added, "Also, we believe that Laguna Research Partners has provided our company's shareholders with a fair and balanced analysis of our proposed merger with Redcat."
In part, the Laguna Research Partners analysis of the planned Tank Sports and Redcat merger states, "The proposed merger, we estimate, could immediately boost Tank's annual revenue from approximately $11.0 million to more than $25.0 million, and gross profit from roughly $2.8 million to more than $4.5 million." The analysis goes on to mention, "We also estimate that an improved gross profit margin at Redcat could generate an incremental $1.3 million in gross profit annually and that the elimination of redundant operating expenses could generate annual cost savings of as much as $1.5 million to $2.0 million."
"Our firm is highly impressed with the sales performance of the Tank Sports product line in the very competitive power-sports market," said Kevin B. Skislock, Partner and Chief Executive Officer of Laguna Research Partners. "In our opinion, the Tank Sports management team has clearly connected with the pulse of consumers in the value-priced motorcycle and ATV markets, and we believe that the Redcat merger is an important step towards the fulfillment of Tank's long-term market strategy."
The merger analysis released by Laguna Research Partners can be accessed at that firm's Web site at www.lrponline.net. It can also be accessed at the Investor Relations section of the Tank Sports Web site at www.tank-sports.com.
About Tank Sports, Inc.
Tank Sports is a leading company that develops, engineers, and markets high performance on-road motorcycles and scooters, off-road all-terrain vehicles (ATVs), dirt bikes and Go Karts through OEMs in China. It utilizes the so-called "China Concept" to participate in the $31.5 billion annually (data: Motor Industry Council) motorcycle/ATV market.
The Tank Sports, Inc. logo is available at http://www.primezone.com/newsroom/prs/?pkgid=3000
About Laguna Research Partners LLC
Founded in 1998, Laguna Research Partners (www.LRPonline.net) is a privately held business intelligence and research firm that produces company, industry, economic, and geoeconomic research, analysis, and forecasting. The firm's primary objective is to provide its research users and business intelligence clients with proprietary, actionable insights. Since 2004, Laguna Research Partners has advised U.S.-based companies entering Asia and Asia-based companies entering the U.S.
Disclosure
Laguna Research Partners has been compensated U.S. four-thousand five-hundred dollars by Tank Sports, Inc. for an Update Research Report and a Summary of that Update Research. Payment was made in full prior to issuance of those reports. No Laguna Research Partners owner, officer, or employee holds a position in and/or engages in transactions with respect to the securities of Tank Sports, Inc. Full disclosure information can be accessed at www.LRPonline.net.