Here is why I believe the speculation around this play might be right.
Auri Footwear Acquires Public Company in Reverse Merger
LAGUNA BEACH, Calif.–(BUSINESS WIRE)– Laguna Beach-based Auri Design Group, LLC. (“Auri”) dba Auri Footwear – announced today that it has taken control of publicly traded company Wellstone Filter Sciences, Inc. (OTCBB: WFSN) via a reverse merger.
The agreement closed February 25, 2011 and resulted in Auri Footwear becoming a public company. The name of the company will be changed to “Auri, Inc.” As a result of the reverse merger, the previous owners of Auri now own and control the majority of the common stock of Wellstone Filter Sciences, replacing the current management with an Auri management team. Auri CEO and President Ori Rosenbaum will remain with the company in the same role. Auri selected a reverse merger rather than a traditional IPO in order to avoid the heavier costs and extended timeframe usually associated with a traditional IPO process.
“We believe this company is poised for the type of growth that would simply outpace an organically funded venture of this scale,” stated Ori Rosenbaum, CEO and President of Auri. “Our products and brand positioning are spot-on and with access to the public markets, we hope to be able to take advantage of opportunities and execute strategic growth initiatives that we’ve previously had to pass up.”
“It’s a great day for our shareholders,” stated Wellstone’s CEO L. Jeremiah Hand. “Auri is an incredible brand that has the potential to revolutionize the footwear industry. The products have already proven to be highly successful at retail and we are very impressed with Auri’s management team.”
Founded in 2007 and debuting with men’s footwear in 2008, Auri opened some of the best boutique retailers in its first two years of operations. After early success in the men’s category, Auri incorporated performance technology and trend-right style into a women’s fashion category, which is launching into retail next month. The company’s innovative design philosophy and solid business fundamentals earned Auri the #8 spot on Forbes Magazine’s 2009 “America’s Most Promising Companies” list and was the only footwear, fashion or apparel brand to make the list.
Auri recently released its first brand movie – a three-minute tongue in cheek presentation showcasing the revolutionary marriage of form and function within the world of women’s fashion footwear.
The video can be viewed on the Auri YouTube channel (http://www.youtube.com/AuriFootwear).