Morrow Snowboards Sold For $1.42 Million Of Stock

SALEM, Ore. - Morrow Snowboardshas been sold to Empire of Carolina, a toy company based in Delray Beach, Fla., for $1.42 million worth of Empire stock, company officials said.

Best known for its Big Wheel children's tricycle, Empire will exchange 0.375 of its own shares for every Morrow share, or just 23 cents a share - less than half what Morrow's stock was trading for early yesterday when the announcement was made.

Morrow shares were trading down 3 cents at 41 cents in late trading today.

Recent Securities and Exchange Commission filings by the Salem-based snowboard maker made clear Morrow had serious problems.

Recent losses put Morrow in violation of its loan agreements. The company had to raise additional capital to appease lenders.