Minneapolis, MN (April 19, 2006) -- Winmark Corporation (Nasdaq: WINA) announced the filing of a Form S-1 registration statement with the Securities and Exchange Commission for the sale of up to $50 million of renewable subordinated unsecured notes with maturities from three months to ten years. The company intends to use the net proceeds from the offering to expand its leasing portfolio, to make acquisitions, to repurchase common stock and for other general corporate purposes.
Winmark Corporation provides financial services and develops franchises for retail stores that buy, sell, trade and consign used and new merchandise. At April 1, 2006, the Company had 806 stores in operation and an additional 43 franchises awarded but not open. Of the stores in operation, there were 395 Play It Again Sports®, 206 Once Upon A Child®, 164 Plato’s Closet® and 41 Music Go Round® stores. In addition, at April 1, 2006, the Company had an equipment leasing portfolio equal to $9.1 million.
A registration statement on Form S-1 relating to these securities has been filed with the Securities and Exchange Commission, but has not yet become effective. These securities may not be sold, nor may offers to buy be accepted prior to the time that the registration statement becomes effective. This news release does not constitute an offer to sell or the solicitation of an offer to buy the securities, nor shall there be any sale of the securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification of the securities under the laws of any such state. A copy of the prospectus when available may be obtained from Sumner Harrington Ltd., 11100 Wayzata Boulevard, Suite 170; Minneapolis, MN 55305.
This press release contains forward-looking statements within the meaning of the safe harbor provisions of Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act” ), relating to future events or the future financial performance of the Company including statements with respect to growing our leasing and franchising businesses. Such forward-looking statements are only predictions or statements of intention subject to risks and uncertainties and actual events or results could differ materially from those anticipated. Because actual results may differ, shareholders and prospective investors are cautioned not to place undue reliance on such forward-looking statements.