Chapter 15 How Corporations Issue Securities 407bre44380_ch15_379-409.indd 407 09/11/15 07:56 AM
Prospectus Summary
The following summary information is qualified in its entirety by the detailed information and
financial statements appearing elsewhere in this Prospectus.
The Offering
Common Stock offered by the Company ................................................................. 500,000 shares
Common Stock offered by the Selling Stockholders ................................................ 400,000 shares
Common Stock to be outstanding after this offering ............................................ 4,100,000 shares
Use of Proceeds
For the construction of new manufacturing facilities and to provide working capital.
The Company
Marvin Enterprises Inc. designs, manufactures, and markets gargle blasters for domestic use. Its
manufacturing facilities employ integrated nanocircuits to control the genetic engineering pro-
cesses used to manufacture gargle blasters.
The Company was organized in Delaware in 2028.
Proceeds
The net proceeds of this offering are expected to be $36,744,445. Of the net proceeds, approxi-
mately $27.0 million will be used to finance expansion of the Company’s principal manufacturing
facilities. The balance will be used for working capital.
Certain Considerations
Investment in the Common Stock involves a high degree of risk. The following factors should be
carefully considered in evaluating the Company:
Substantial Capital Needs The Company will require additional financing to continue its expan-
sion policy. The Company believes that its relations with its lenders are good, but there can be no
assurance that additional financing will be available in the future.
Licensing The expanded manufacturing facilities are to be used for the production of a new
imploding gargle blaster. An advisory panel to the U.S. Food and Drug Administration (FDA) has
recommended approval of this product for the U.S. market but no decision has yet been reached
by the full FDA committee.
Dividend Policy
The company has not paid cash dividends on its Common Stock and does not anticipate that divi-
dends will be paid on the Common Stock in the foreseeable future.
Management
The following table sets forth information regarding the Company’s directors, executive officers,
and key employees.Name Age Position
George Marvin 32 President, Chief Executive Officer, & Director
Mildred Marvin 28 Treasurer & Director
Chip Norton 30 General ManagerGeorge Marvin—George Marvin established the Company in 2028 and has been its Chief Execu-
tive Officer since that date. He is a past president of the Institute of Gargle Blasters and has
recently been inducted into the Confrérie des Gargarisateurs.
Mildred Marvin—Mildred Marvin has been employed by the Company since 2028.
Chip Norton—Mr. Norton has been General Manager of the Company since 2028. He is a former
vice-president of Amalgamated Blasters, Inc.