Offering Circular (Revised)

 

Sunday River Skiway Corporation

BETHEL, MAINE

Incorporated under the Laws of the State of Maine

to do business within said State on April 28, 1958

Capitalization: 25,000 shares of Common Stock

of the par value of $10.00 per share

 

 

 

 

 

This offering limited to 14,357 shares of the Common Stock of the SUNDAY RIVER SKIWAY CORPORATION, at Ten Dollars ($10.00) per share.

 

 

 

                                Offering                Underwriting         Proceeds

                                price to                discounts or              to

                               public                    Commissions       Corporation
Per share                     $10.00                   None                    $10.00
Total                   $143,570.00                   None             $143,570.00

 

The 14,357 shares that constitute this offering are for cash only, except that, by

( prior agreement with the Board of Directors, purveyors of land, materials, equipment or services, whoever they may be, may be compensated for their land, materials, equipment or services in part or in whole by the issuance of shares of Common Stock at their par value on a dollar for dollar basis for the value received.

 

As of April 30, 1960, a total of 7,307 shares have been subscribed by Directors and other interested persons, of which 7,102 shares are fully paid as of that date.

 

This offering is to be made by mail, through the personal efforts of the officers of the Corporation, and by a number of duly authorized Agents of the Corpora­tion who have been licensed by the State Bank Commissioner. There are no agreements in effect with underwriters as of the (late of this Revised Offering Circular. It is estimated that the total selling cost, which will include, printing, postage, clerical hire and compensation for the above-mentioned Agents, will not. exceed a total of $5,000.00.

                * * * * * * * * * * * *.                           *

THESE SECURITIES ARE OFFERED PURSUANT TO AN EXEMPTION

FROM REGISTRATION WITH THE UNITED STATES SECURITIES AND

EXCHANGE COMMISSION. THE COMMISSION DOES NOT PASS UPON

THE MERITS OF ANY SECURITIES NOR DOES IT PASS UPON THE

ACCURACY OR COMPLETENESS OF ANY OFFERING CIRCULAR OR

OTHER SELLING LITERATURE.

 

 

 

The date of this OFFERING CIRCULAR (REVISED) is June 24, 1960.

      

FORE WORD

 

 

Barker Mountain, with an elevation of 2,582 feet and a vertical descent of approximately 1,400 feet, offers a variety of slopes that, in the opinion of several experts, will appeal to large numbers of expert, intermediate and novice skiers. With a good gravel road about a mile and a half in length from the black-topped Sunday River Road, an adequate parking area at the base of the mountain, a suitable lodge with all necessary conveniences, a modern T-Bar Lift, and down­hill trails that will vary in length up to one and one-half miles, the Corporation believes that the Sunday River Skiway, when completed, will rank among the best in New England for scenic beauty, skiing pleasure, and accessibility.

The SUNDAY RIVER SKIWAY, CORPORATION hereinafter referred to as the Corporation, was incorporated under the Law of the State of Maine, at Bethel, Maine, on April 28, 1958 to “construct and operate for profit one or more recreational areas in the State of Maine, with major-emphasis on winter sports, but not necessarily limited thereto.” Its present objective is the development of a major ski area, with all necessary appurtenances on Barker Mountain (some­times called Bald Mountain) in the Town of Newry, Maine, approximately five (5) miles from the business and shopping district of Bethel.

 

THE CORPORATION

 

The SUNDAY RIVER SKIWAY CORPORATION was organized by a group of sixteen (16) residents of the Bethel Area, all of whom had subscribed for stock and were elected to the Board of Directors of the Corporation at its first meeting. The Directors, with the shares of stock held by each, as of the date of this Revised Offering Circular, are as follows:

 

 

The Officers of the Corporation, all Stockholders and Directors, are:

              President                Addison C. Saunders
              Vice President          
Murray W. Thurston
              Clerk                          Henry H. Hastings
              Treasurer                       Wilbur R. Myers

 

—2—

The By-Laws adopted by the. Incorporators, provide, among other things:

that the Board of Directors and the Clerk shall be elected annually by the Stock­holders, and that the Board shall consist of not less than nine (9) nor more than twenty-five (25) Stockholders; that the Treasurer shall be bonded; that each share of Common Stock shall be entitled to one vote in corporate affairs; that no real or personal property to which the Corporation has taken title maybe mort­gaged or pledged ‘as security- for any indebtedness of the Corporation1 without the prior approval of the holders of a majority of the outstanding shares of Common Stock; that no Officer or Director of the Corporation shall receive any fee or commission for the sale of Common Stock; that no dividends in excess of ten per cent (1U%) of the net profits for the preceding year may be declared on the Common Stock by the Board of Directors if the Corporation is in arrears in payment of any secured indebtedness, corporate notes, wages, or trade accounts of more than sixty (60) days obligation; and that no Officer or Director of the Corporation shall make any agreement or commitment on behalf of die Corporation unless specifically authorized to do so under the By-­Laws or by action of the Board of Directors.

 

A complete copy of the By-Laws may be obtained from the Clerk of the Corporation by any interested person.

 

 

CURRENT OFFERING

 

To finance the initial phase of the development, iii addition to the 643 shares subscribed and fully paid at their par value of $10.00 per share by the lncorporators, the Corporation is offering 14,357 shares of its Common Stock for purchase by the public in lots of one or more shares at their par value of $10.00 per share. The Directors of the Corporation reserve the right to accept or reject any offer made for the purchase of shares, or to issue a lesser number than requested to any subscriber if the present offering should be oversubscribed either through cash offers or by virtue of agreements on the part of purveyors of land, materials, equipment, or services to accept payment in whole or in part in the form of Common Stock of the Corporation.

 

PROGRESS TO DATE

 

During the Summer and Fall of 1959, with the aid of a loan in the amount of $40,000.00 from the Small Business Administration, a major part of the pro­posed development was completed. For the 1959-1960 Winter Season, the Sun­day River Skiway was ready for business with an excellent approach road, a 300-car parking area, 3200-foot Hall T-Bar Lift, an 800-foot Rope Tow, a 4000-foot intermediate slope with a vertical descent of 975 feet, a 2700-foot

 

—3—

 

The Stock Transfer Agent and Registrar is the Clerk of the Corporation, Henry H. Hastings, Esq., One Broad Street, Bethel, Maine; and his office is the business office of the Corporation for the time being.

 

The Corporation has been licensed by the Bank Commissioner of the State of Maine as a dealer in securities and authorized to offer 14,357 shares of its Common •Stock to the public. Neither the delivery of this Offering Circular nor any sale hereunder shall, under any circumstances, create an implication that there has been no change in the affairs of the Corporation since the date hereof. This offering Circular does not constitute an offer by the Corporation to sell its Common Stock in any state to any person to whom it is unlawful for the Corporation to make such offer in such state.

 

Novice to intermediate slope, an 800-foot novice slope, and an unusually attrac­tive 36x60 foot Lodge containing a Ski Shop, Canteen, Washrooms, First  Aid Room and a glass-enclosed  observation deck overlooking the entire development.

 

The total investment to date has amounted to approximately $110,000.00, and the reception accorded the development by the, skiing fraternity and the general public has been most gratifying to the Directors of the Corporation.

 

The above-mentioned Small Business Administration Loan, in the amount of $40,000.00, is to be liquidated at the rate of $6,668.00 per year over a period of six years from October 22, 1959 with interest at the rate of 5½% per annum on the unpaid balance. Under the terms of the Loan Authorization, no Officer or Director of the Corporation shall receive any compensation for services ren­dered without the prior written consent of the Regional Director of the Small Business Administration. No Officer or Director has received any compensa­tion from the Corporation up to the date of this offering Circular (Revised), nor is any such contemplated in the immediate future.

 

 

FUTURE DEVELOPMENT

 

This offering of the Common Stock of the Corporation is being continued for the purpose of liquidating the Small Business Administration loan and con­tinuing the development of the area as rapidly as funds become available.

During the Summer of 1960, it is proposed to clear another 4000-foot inter­mediate slope, to make substantial improvements in the novice slopes, and to do a considerable amount of grading and seeding on the existing slopes.

Long-range plans call for the extension of the Lift to the top of the moun­tain, the development of several trails from the top to the base, enlargement of the parking area, and the construction of an addition to the present Lodge that will provide more seating capacity for Canteen customers and spectators.

 

With approximately $80,000.00 still to be realized from the sale of stock under this offering, the following budget has been established for the liquida­tion of the Small Business Administration Loan and completion of the original development plan:

 

Balance S.B.A. Loan

$33,332.00

1,500-foot T-Bar

20,000.00

Additional Trails

10,000.00

Addition to Trails

5,000.00

Additional Automotive Equipment

7,000.00

Expansion of Parking Area

2,000.00

Stock Issue Promotion

1,000.00

Contingencies

1,668.00

Total

$80,000.00

 

STOCKHOLDERS’ PRIVILEGES

 

To promote interest in the development on the part of winter sports enthusiasts, the Board of Directors has voted to extend the following pass privileges to major stockholders according to their holdings:

              25  Shares —- One Year Pass
              50  Shares — Five Year Pass
              75  Shares — Ten Year Pass
                                           —4—

100 Shares — Lifetime Pass; or for a Family*Unit, the equivalent of 20 One Year Passes divided among the individual members iri what­ever manner the stockholder may elect.

150 Shares — Any practical combination of the above-outlined provisions; or, for a Family Unit, a Five Year Pass for each member of the family except children over 17 years of age.

Any stockholder who holds twenty-five or more shares will have the right to assign his pass privilege to anyone he may select, or to a Family Unit of his choice if he holds a sufficient number of shares, at the time the passes are issued; but no passes will be transferable to another person once they have beer, issued.

Mail Address:

SUNDAY RIVER SKIWAY CORPORATION One Broad Street Bethel, Maine

BALANCE SHEET

 

 

 

 

$1,896.36


CURRENT LIABILITIES

                Accounts Payable                                            $1,526.04

                Withholding Taxes Payable                                 104.40

                Social Security Taxes Payable                               65.93

                Reserve for Real Estate Taxes                             200.00

                                                                                                                                                $1,896.36

-5-

 

FIXED-LIABILITIES

Notes; Payable ..(Small", Business tAdmin.)                             $33,332.00

33,332.00

488.74


CAPITAL STOCK ($10.00 Par Value — Common
Stock — 25,000 Shares Authorized)
7,102 Shares Issued                                                        $71,020.00

       205 Shares Subscribed''                                       2,050.00

       73,070.00

UNDISTRIBUTED SURPLUS (See Schedule "A")              $488.74


 


         $108,787.10

*    Original loan was $40,000 for six years from October 22, 1959 with pay­ments of 86,668 per year on principal payable as follows: $1,667 payable on January 31, February 28, March 31, and April 30 of each year. Four pay­ments totaling $6 April 30, 1960

CURRENT ASSETS

Cash on Deposit          $3,145.83
Accounts_Receivable 69.87
Stock_Subscriptions_Receivable                                       2,050.00

      5,265.70
FIXED ASSETS*

Base Area & Parking Lot                                         .$6,296.13

First Aid Equipment                                                    150.00

Furniture & Fixtures                                                   110.00

Hall T-Bar Lift                                                       38,408.94

Buildings                                                               22,796.25

Land                                                                                         2,274.85

Lift Line & Lift Installation                                       10,827.36

Machinery   and   Equipment                                     4,642.72

Road & Bridge Construction                                       6,982.28

Rope Tow Installation                                                   60.00

Telephone Line Installation                                           404.26

Trail  &  Slope  Construction                                       9,974.32

Organization Expense                                                3,482.48

Technical  Assistance  &   Engineering                          2,411.81

                                 $108,821.40 •
Less Estimated Reserve for Depreciation                                      5,300.00

                            103,521.40

* At actual cost.                                                                                            $108,787.10


 


,668 have been paid leaving balance of $33,332 payable in installments of $1,667 each on January 31, February 28, March 31, and April 30 of 1961, 1962, 1963, 1964 and 1965 together with interest at the rate of 5^2% per annum.

Schedule "A"-INCOME AND EXPENSES-December 28, 1959 to April 30, 1960

INCOME

TicketSales $19,171.67
Canteen 7,096.87
Miscellaneous                                                        358.79     

                                                                                                     26,627.33

          


 


EXPENSES

Labor—General   Operations                       $5,095.81

Labor—Canteen                                        1,574.03

Food & Supplies                                        4,314.91

First Aid Supplies                                          47.63
Maintenance—Automotive  Equipment                              223.43

Gasoline, Oil & Bottled Gas                          1,011.83

Plowing & Sanding                                               2,863.31

Advertising & Publicity                                2,534.05

Telephone & Office Expense                           413.76

State Sales Tax                                              7.39

Insurance                                                1,636.89

Interest                                                     193.83

Ground Rental                                              200.00

Social Security Taxes                                    200.80

Miscellaneous                                              300.92

Real Estate Taxes (Estimated)                        200.00

Depreciation   (Estimated)                            5,300.00

26,138.59
Income in Excess of Expenses                         $    488.74

 

-6-

CASH RECEIPTS AND EXPENDITURES

 

April 28~ 1958—April 30, 1960

 

RECEIPTS,

           Sale of Stock                                                          $58, 809.50
           Sale of Tickets                                                         18,134.67
           Sale of Season Tickets                                                  925.00
           Canteen Receipts                                                       7,096.87
           Sales of Pulpwood                                                     2,313.33
           Note payable                                                            11,200.00
           Interest received                                                           515.85
           Miscellaneous income                                                  471.16
           Miscellaneous items                                                     139.22

           Total Receipts                                             $99,605.60

 

           EXPENDITURES

           Publicity and promotion                                           $2,534.02
           Payrolls                                                                       5,920.79
           Canteen expenses                                                        4,183.24
           Plowing and sanding                                                   2,663.31
           Miscellaneous operating expense                                  287.46
           Lodge                                                                        17,776.88
           Telephone and office expense                                    1,059.87
           Legal expenses                                                              636.86
           Stock sale expenses                                                      469.38
           Road and bridge                                                         5,114.53
           Technical assistance                                                   1,622.81
           Trails                                                                        11,871.65
           Lift line and installation                                             9,641.01
           Base area and parking                                                5,748.73
           Notes payable                                                             5,001.00
           interest                                                                           709.68
           insurance                                                                    1,611.26
           Machinery and equipment                                         3,956.13
           Gasoline and oil                                                            381.79
           Withholding tax                                                            593.10
           Social security tax                                                        343.18
           Hall T-Bar lift                                                            9,600.00
           Bombadier expense                                                      155.39
           Land and land acquisition                                            764.85
           Escrow account                                                            270.00
           Ticket expense                                                              168.33
           Sales tax                                                                        197.53
           Miscellaneous payments                                            3,176.99

           Total Expenditures                                       $96,459.77
           Cash on Hand,
April 30, 1960                           $ 3,145.83

 

 

 

I hereby certify that the foregoing is a true account of the financial

condition of the Sunday River Skiway Corporation as of April 30, 1960.

 

Signed WILBUR R. MYERS

                                                        Treasurer (Seal)

 

State of Maine

County of Oxford, SS

Subscribed and sworn to before me 12th day of May, A. D. 1960.

Signed HENRY H. HASTINGS

Notary Public (Seal)