SEPTEMBER 12, 2003
CART is sold
The board of directors of CART has agreed that the company for $0.56 per share, based on the number of shares available. If this transaction is completed a new organization called Open Wheel Racing will take over the running of CART and take the company off the New York Stock Exchange.
Open Wheel Racing Series is a newly formed holding company owned indirectly by a group of investors including Gerald R. Forsythe, Kevin Kalkhoven and Paul Gentilozzi. Mr. Forsythe or entities owned or controlled by him currently have beneficial ownership of 3,377,400 shares of Championship common stock, approximately 22.9% of the outstanding shares of Championship. These shares will be contributed to Open Wheel Racing Series rather than acquired for cash.
Under the terms of the agreement, Open Wheel Racing Series may terminate the agreement prior to September 18.
The transaction must be approved by stockholders holding a majority of the outstanding shares. This will take several months to complete.
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