Automated stores such as MillenniumMart are not new, they have existed in Asia, especially in Japan for a number of years now and have been quite successful there. Mr. James Bean, MillenniumMart's founder and the driving force behind the joint venture, has been intrigued with the idea of bringing this new type of store to the U.S. since it can significantly reduce costs and the ability of an automated store to provide products and services is only limited to the imagination of management.
The company is a joint venture start-up company between the principals, Mr. Bean and his associates, and the management of Martin-Bower, one of the country's largest and most successful food distributors. The company will be incorporated in the state of Delaware with all shares held by private investors.
We will be structured as a C-Corporation which operates as a standard corporation. This form was chosen by the Board of Directors because of various tax advantages. Retained earnings will not be distributed as dividends for at least five years, thus enabling the early retirement of the debt. Additionally, the corporate structure offers limited personal liability.
The company is a joint venture start-up between the principals, Mr. Bean and his associates, and the management of Martin-Bower, one of the country's largest and most successful food distributors. The company will be incorporated in the state of Delaware with all shares held by private investors.
Martin-Bower will own 29% of MillenniumMart's initial private shares with an option to acquire a further 11% shares based on growth and profitability after the first five years. MillenniumMart is expected to open its first store in downtown Manhattan in March of 2003. The company will be set up with a board of directors. Mr. James Bean, a former senior manager of Martin-Bower is slated for the position of CEO. Mrs. Linda Tuck has accepted the position of CFO.
Our start-up expenses come to $453,000, which are largely single time fees associated with opening the store. These costs are financed by both private investors and the investment of Martin-Bower.