B3403 - VR LONDON'S EXECUTIVE SUMMARY

THE COMPANY: The company manufactures and sells computer controlled liquid feeding systems and related equipment for hog producers. It is equipment that enables large producers to produce more hogs at lower cost with less labour. The electrical components of the system are imported from Europe under an exclusive agreement for Canada and the USA.

WHAT IS FOR SALE: The vendors are offering all of the Shares of the Corporation for sale. This would include equipment, inventory, furniture and fixtures, leasehold interests, the use of the name, licences, approvals and the on-going business. The real estate from which the business is operated is owned separately but is for sale and could be purchased or leased at the discretion of the purchaser of the business. The sale includes but is not limited to the following:

Tools & Equipment $ 56,000
Moulds 60,000
Vehicles 26,000
Inventory 250,000
Lease hold improvements 5,000
Total $ 397,000

FINANCIAL SUMMARY: Because of the nature of the product produced and the market served sales fluctuate on an annual basis but the company remains profitable in slower years and sales are growing rapidly.

DISCRETIONARY CASH: Is the amount of money that is generated by a business and is available to the owner to spend at his own "Discretion." It includes owners' wages, any profit the business makes, non-cash expenses (depreciation, etc.), one time or unusual expenses, an owner's personal benefits (personal car expenses, etc.), interest expense on money borrowed for capital additions or for the purchase of the business or any other nonessential expenses.

1999
Net Income $ 110,461
Depreciation 24,975
*Owner's Wage 58,400
Long Term Interest 5,000
One time Expense 7,000
Owners Personal 2,000
Owner's Auto Expense 8,000
TOTAL $216,236

Telephone: (519) 673-3197 • Fax: (519) 673-3199

Email: vrlondon@gtn.net

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