Source: LOHAS Weekly Newsletter
Published: Monday, December 01, 1997

OKLAHOMA CITY—Multi-level marketer Advantage Marketing Systems Inc. (AMSO) in early November successfully completed a secondary offering of 1.3 million units, each consisting of a common share priced at $4.50 and a warrant, raising approximately $5.8 million, after underwriting fees, for growth programs.

The company will use $3.5 million of the proceeds to expand its U.S. distributor network and $1.5 million on developing new products. Concurrent with the offering, AMSO is now listed on the Nasdaq SmallCap Market under the trading symbol AMSO as well as on the Boston Stock Exchange under the symbol AMM.

AMSO sells weight-management products, dietary supplements and personal care products. Dietary supplements account for approximately 80% of sales, according to Mike Branch, VP, investor relations. Paulson Investment Co. Inc. of Portland, OR, and Joseph Charles & Associates Inc. of Beverly Hills, CA, underwrote the offering.

The company, which has been public for eight years, earned $132,483 or $.04/share on sales of $7.66 million in the first nine months of 1997, up from $4.46 million in the same period in 1996.

With an acquisition strategy aimed at beefing up its network marketing organization, currently at 19,000 “active” distributors in 50 states, AMSO purchased Miracle Mountain International Inc. in May 1996; Chambre International Inc. in January 1997; and Stay ‘N Shape International Inc., Solution Products International Inc., Nation of Winners Inc., and Now International Inc. in April 1997. While the company markets more than 130 products, its largest seller is AM-300, a blend of herbs including an ephedra concentrate and chromium picolinate, which accounts for approximately 45 percent of net sales.