Clothing company Aussie Apparel Group Ltd on Wednesday it had signed a letter-of-intent to acquire the extreme sports-related Bluetorch trademark and other intellectual property for an undisclosed amount.

The California-based firm, whose brands include Hot Tuna and Xisle, said the potential deal with GBI would allow it to utilise the Bluetorch name in all categories with the exception of Bluetorch TV whose rights are owned by Fox Sports Net.

Aussie Apparel president and CEO, Bruce MacGregor, said: "As we have previously stated, we continue to look for acquisition candidates that will contribute to our revenue goal of $280 million over the next five years. The Bluetorch letter-of-intent is consistent with this objective."

He added both parties anticipate a definitive agreement within four weeks.