News:
biz.yahoo.com
Monday March 27, 8:45 am Eastern Time
Company Press Release
Whitehall Enterprises Acquires Direct Financial,
LLC
MIAMI--(BUSINESS WIRE)--March 27, 2000--Whitehall Enterprises, Inc.
(OTCBB:WTHL - news) announced today that its wholly-owned subsidiary, Alternative
Lending Group, Inc. (ALG), has completed the acquisition of Direct Financial, LLC, a Michigan mortgage broker/lender, in
exchange for 2,125,000 shares of restricted Whitehall stock which was valued at $1.00 per share upon closing.
``We are excited to announce another positive development for Whitehall Enterprises as we fuel Alternative Lending's
tremendous growth potential,' said Whitehall President and Chief Executive Officer Luis Alvarez. ``The Direct Financial
acquisition will increase ALG's annual gross mortgage originations from $93.5 million to $250 million. It is very seldom that a
situation such as this presents itself so quickly. Fortunately, we were in the position to expeditiously facilitate the transaction.'
As a result of the acquisition, ALG should not only meet but exceed its year 2000 goal of $300 million in gross loan production
by year's end. With two Michigan locations and an expanded retail staff, Direct Financial will immediately enhance ALG's East
Coast presence and double the Company's retail origination staff. Direct Financial's current gross loan origination volume of
between $10-12 million per month will be added to ALG's mortgage banking function, allowing the Company to increase
profitability and yield on each loan. Direct Financial has maintained a current growth rate of 10% per month, which
corresponds with ALG's projections.
``There is a clear synergy between Direct Financial and our existing portfolio of services,' said ALG President and Chief
Executive Officer R. Jeffrey Mertz Jr. ``Today we are better positioned than ever to build upon our current capabilities. Direct
Financial's average gross loan amount is almost double that of ALG's because of their geographical location. This acquisition is
just the next step in our plan to expand our state-of-the-art Web site presence as well as accelerate the growth of our Internet,
Retail and Wholesale divisions.'
Direct Financial's services will be integrated through the ALG Web site at www.alternativelending.com, where customers can
apply for all types of loans 24 hours a day, via the Internet. The company's physical locations will allow ALG to establish a
strong wholesale presence with brokers in the Midwest region.
Whitehall Enterprises, Inc. (OTCBB:WTHL - news) is a growth oriented holding company targeting business acquisitions,
which will contribute a diversified asset base for the company. Whitehall Enterprises' current business activities include
manufacturing of plastic containers for pharmaceutical and healthcare companies, marketing hair growth promotion and hair loss
prevention technologies, and e-commerce mortgage banking.
The Private Securities Litigation Reform Act of 1995 provides a ``safe harbor' for forward-looking statements. Certain
information included in this new release (as well as information included in oral statements or other written statements made or
to be made by Whitehall Enterprises, Inc.) contains statements that are forward-looking, such as statements related to
consummation of the transaction, anticipated future revenues of the companies and success of current product offerings. Such
forward-looking information involves important risks and uncertainties that could significantly affect anticipated results in the
future and accordingly, such results may differ materially from those expressed in any forward-looking statements made by or
on behalf of Whitehall Enterprises. For a description of additional risks and uncertainties, please refer to Whitehall Enterprises,
Inc.'s filings with the Securities and Exchange Commission, including Forms 10K and 10-Q.
Contact:
Investor Relations Services, Inc., New Smyrna Beach, FL
Tom Biggs, 904/409-0200 |
