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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT PURSUANT
TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported): October 5, 1998
Tollycraft Yacht Corporation
(Exact name of registrant as specified in its charter)
Nevada
(State or other jurisdiction of incorporation)
0-21087 86-0849925
(Commission File Number) (I.R.S. Employer Identification No.)
8201 Peters Road, Plantation, Florida 33324
(Address of principal executive offices, including Zip Code)
(800) 999-9381
(Registrant's telephone number, including Area Code)
(Former name or former address, if changed since last report)
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Item 5. Other Events.
NEWS RELEASE
10-12-98
TOLLYCRAFT YACHT CORPORATION (trading symbol TLLR)
Tollycraft Yacht Corporation announced today that it has signed a Joint
Venture Agreement with "Yachts of the Americas" a Mexican Corporation to
produce its vessels in Progreso, Mexico. The vessels will be produced in a
new 100,000 sq. ft. facility presently being designed for Tollycraft. The
building will be situated on 8 acres located in a new marine business park
that is presently being developed by the Governor of the State of Yucatan. The
property comes with 240 feet of waterfront which will feature an all concrete
wharf as well as a rail system for the launching and haul out of vessels up to
150' in length.
Peter Hobbs, Chairman of Tollycraft has spent most of the last nine months in
the Yucatan trying to negotiate with various business entities for the
construction of its vessels. The Progreso area was chosen because of the
proximity to Florida and because of the population base of almost 1,000,000.
Being able to receive supplies from the United States in a timely manner and
being able for clients to take delivery offshore was very important in the
decision of the company to relocate its production facilities. The boats will
still be built to U.S. designed specifications along with 100% of all the
parts, engines, etc., coming from the United States. In addition the Quality
Control will be the same as if the boat were being manufactured here in the
U.S. Merida, Yucatan is only a little over one hour flying time from Miami
where qualified management personnel will be recruited to assist in the start
up phase of the operation.
The move will also allow Tolly to build its smaller sized vessels, something
it has not being able to do for years because of the labor costs involved. We
will now be able to produce our 30' in a profitable manner. This will also
allow for present Tolly's in the 48, 57 and 65' range to be priced extremely
competitively. Tolly expects to begin production sometime during the first
quarter of 1999.
Tolly has established a temporary office in Ft Lauderdale. It is anticipated
that D. R. Cooley, President of Tolly will relocate to Florida sometime after
the first of the year. Cooley will continue to be in charge of the U.S.
operations.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by
the undersigned hereunto duly authorized.
TOLLYCRAFT YACHT CORPORATION
By: /s/ Peter D. Hobbs
_____________________________
Peter D. Hobbs, Chairman
Dated: October 15, 1998
