ASV Inc. announced yesterday that Caterpillar Inc. has exercised its warrant for the purchase of 1,040,069 shares of ASV common stock at $21 per share.

These shares were subject to an acceleration notice issued by ASV on Oct. 21, 2003. Caterpillar was required to either purchase these shares or lose the opportunity to acquire the shares under the warrant. A total of 8,727,058 shares remain subject to the warrant, with 2,053,426 shares subject to an acceleration notice issued Nov. 12, 2003. Caterpillar now owns 2,640,069 shares, or 21.8 percent of the outstanding common stock of ASV.

"The exercise of the warrant shares by Caterpillar further strengthens an already successful alliance between ASV and Caterpillar," said ASV’s President Gary Lemke. "The warrant proceeds of $21 million are expected to be used to expand our product line, increase production capabilities and product and technology awareness and general working capital needs."

On Nov. 12, 2003, ASV issued a second acceleration notice to Caterpillar to purchase 2,053,426 shares of ASV common stock at $21 per share. This second acceleration notice requires Caterpillar to either purchase the number of shares covered by the acceleration notice within 75 days of the issuance date of the notice or lose the opportunity to acquire the shares under its warrant with ASV. ASV expects to provide further earnings guidance for 2004 at that time.

ASV designs, manufactures and sells rubber-tracked, all-purpose crawlers and related accessories and attachments. ASV also manufactures rubber-tracked undercarriages, which are a primary component on Caterpillar’s multi-terrain loaders.

Today's top stories

Construction Industry Optimistically Preparing for New Year Ahead

CFX Oversees $412M SR429 Expansion in Florida

Capital Express Central Project Ramps Up in Texas

VIDEO: NCDOT Plans Major Road Upgrades in Wilmington Over Next Several Years

DEVELON Set to Exhibit at ARA Show 2025

Des Moines Airport Works With Weitz/Turner On Expansion

Ring Power Lift Trucks Partners With Hiab to Bring MOFFETT Truck-Mounted Forklifts to Florida Customers

Earthborne Demo Day Draws Crowd Despite Downpour