American DreamCar Inc., a Bethesda-based company that rebuilds classics from the so-called muscle cars of the '60s and '70s, announced yesterday that it is seeking Securities and Exchange Commission approval for its initial public offering of stock.
It also revealed that it could be moving its assembly plant to Baltimore from the Cleveland area.
Robert G. Seasonwein, president of DreamCar, said the company needs to consolidate its production and has been meeting with Maryland Department of Economic and Employment Development officials to discuss combining two of its plants, potentially employing 60 workers at a new site in Baltimore.
He said Baltimore's enterprise zones offer an attractive financial incentive but added that state officials also have shown the company sites at enterprise zones in Frederick and Washington counties.
"We're just looking now," he said, adding that the company also is considering sites in northeastern Ohio and Cleveland. "We probably won't make a decision until sometime after our [stock offering] closing, or the beginning of next year."
Marilyn J. Corbett, a spokeswoman for the Department of Economic and Employment Development, declined to comment on DreamCar.
In its filing with the SEC, DreamCar said it plans to raise up to $2.55 million with an initial public offering of 850,000 preferred share units. Each unit would include one class B convertible preferred share and five class B common share warrants. Hibbard Brown & Co. Inc. would handle the underwriting of the sale.
Proceeds from the offering would be used to repay debt; establish new "remanufacturing" facilities; purchase equipment; and for marketing, advertising and working capital, the company said in its filing.
Mr. Seasonwein said DreamCar has about 7.5 million shares outstanding as a result of a merger in 1989 with Access Capital Inc., a venture capital company. DreamCar Holding Co., the parent of American DreamCar, emerged as the surviving corporate entity.
DreamCar Holding shares are listed on the NASDAQ over-the-counter market. The stock was quoted yesterday at 15.625 cents bid and 21.875 cents asked.
DreamCar specializes in what Mr. Seasonwein calls the remanufacture of vintage autos. Instead of restoring cars to their original specifications, the company refurbishes them using rebuilt engines and such innovations as electronic ignition, disc brakes and power steering.
The company has yet to post a profit. From its inception in August 1988 to the fiscal quarter that ended July 31, the company has posted a deficit of about $1.7 million, Mr. Seasonwein said.
The company has established nine sales outlets nationwide since January. Fox Chevrolet sells its cars in the Baltimore area.