After 12 years as a mine exploration company, Spokane-based Gold Securities Corp. has dropped the pick ax for the recycled clothing business.
Gold Securities officials Thursday announced the company’s merger into a subsidiary of Pure Tech International Inc. of New Jersey.
Gold Securities shareholders now own 8 percent of Evolutions Inc. of Paramus, N.J. Evolutions produces clothes made from 100 percent recycled material.
Pure Tech becomes the majority owner of Gold Securities. Shareholders of Evolutions received 10 million shares of common Gold Securities stock. If shareholders approve the deal, they’ll get the rights to 88.9 million more shares.
Evolutions President Michael Nafash was named president and chief executive officer of the new company. Robert O’Brien, outgoing president and CEO of Gold Securities, will serve on the board of directors of Evolutions.
Gold Securities had explored several gold plays in its history, most recently working with Spokanebased Pegasus Gold Inc. on mineral reserves at Pegasus’ Zortman/ Landusky mine site in North Central Montana. O’Brien said the exploration didn’t produce as expected, and that the company has searched for three years for a new partner.
A Swedish law firm connected O’Brien with Pure Tech, a fast-growing company that needed a shell company like Gold Securities so that it could go public to raise money needed to grow.
“Companies that can’t afford to do an initial public offering look for companies like us, and it’s an exciting opportunity for our shareholders,” he said. “We’re tickled pink with this.”
Gold Securities will cease to exist and O’Brien will likely serve a brief time on the new board to see the transition through. Gold Securities has about 500 holders of 8.5 million shares - many of them local - before the merger added 10 million more shares.