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The company raised $5.5 million through the sale of 73,333 shares of a newly designated Series B Preferred Stock via a private placement with a major investor. The transaction closed on Oct. 9, 2000. The proceeds from the sale were used to retire trade debt and strengthen working capital in preparation for the busy pre-holiday manufacturing season."This major cash infusion comes at an opportune time for Karts International -- with our biggest annual sales period right around the corner," said Chairman Blair benGerald. "The retirement of debt and additional working capital will allow us to ramp up our production to meet the high demand expected during the year 2000 holiday gift-giving season."

Dean''s next mode of transportation was the bicycle (shown in Figure 2). Like most kids, he gained a sense of independence, learned new skills (balance), and experienced new thrills (speed)! He discovered that unforeseen circumstances can lead to personal injury. He also learned valuable lessons about looking ahead for hidden dangers and judging distances in the event of having to make an emergency stop or maneuver. Bike riding is great preparation for learning to drive a fun kart.Figure 3 is a photo of Dean and his 6-year-old brother, Jacob, riding in an entry-level fun kart. This is where driver training really gets serious, This fun kart has a steering wheel, accelerator and brake pedals, and three-point safety seat/shoulder belts. Due to their low center of gravity, the two-seat models safely carry a passenger and driver--when driven as recommended by the manufacturer (at a safe speed for the present road conditions and hazards). All fun karts are required to have overhead brush guards to provide limited protection against obstacles in compliance with American Fun Kart Association (AFKA) standards. All karts are also required to have drive-train guards to protect against entanglement of such objects as clothing and hair. Dean is sitting on his dad''s quad in Figure 4 (see page 20). He is not yet allowed to drive it! Although many quads are driven by youngsters, too many of them have terrible accidents because of excessive speed, a high center of gravity, and a lack of rider protection. Also, handlebar steering and the coordination necessary for hand-and-foot braking are not skills that will carry over to driving a street-legal vehicle.

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