CN announces its strategic plan. At 1 5/8, the stock is seeling for about a $.10 premium over its cash value.
biz.yahoo.com
Monday April 17, 1:16 pm Eastern Time
Company Press Release
Calton Inc. Announces Strategic Plan
RED BANK, N.J.--(BUSINESS WIRE)--April 17, 2000--Calton, Inc. (AMEX:CN - news) announced today that its strategic plan will focus on acquiring controlling interests in information technology companies.
Anthony J. Caldarone, Chairman, President and Chief Executive Officer of the Company, stated, ``Since the sale of our homebuilding operations at the end of 1998, we have been analyzing potential acquisitions and other business opportunities with a view toward enhancing shareholder value. After reviewing and considering various alternatives, we have determined to focus on the information technology industry, including Internet and e-commerce companies. We believe that combining our capital, management and acquisition strategy with promising companies will create a stimulating environment for the growth of potential partner entities.'
To help achieve its objectives, the Company, since the sale of its homebuilding operations, has:
Acquired iAW, Inc., an Internet business solutions provider which has been renamed eCalton.com, Inc., as a platform to establish a presence in the Internet and e-business industries
Acquired a 50.4% interest in PrivilegeONE Networks, a company recently formed to develop a co-branded loyalty credit card program with Internet applications
Through an equity acquisition, established a strategic relationship with CorVu Corporation, a business-to-business performance measurement software company
Added Kenneth D. Hill and Robert E. Naughton, each of whom has extensive experience in the information technology industry, as directors of the Company
Expanded its management through the addition of three new officers, including a Vice President of Acquisitions, a Financial Analyst and a Senior Vice President of Accounting with prior experience in e-commerce
Has been actively reviewing business plans and meeting with representatives of potential acquisition candidates and strategic partners
Repurchased Calton stock pursuant to its stock repurchase program at prices below book value, thereby increasing the book value per share of the shares that remain outstanding
``We currently have approximately $35 million of liquid assets which can be used to pursue our strategic plan,' said Mr. Caldarone. ``Being a public company with significant capital provides us with unique opportunities to acquire target companies with cash and/or stock and to access the public markets for additional capital, if necessary. As part of our strategic plan, we plan to explore the establishment of public shell companies to facilitate strategic acquisitions/spin-offs, as well as the formation of strategic alliances with investment management, venture capital and investment banking firms to increase potential acquisition and other business opportunities. We believe that these types of alliances can cultivate deal flow and broaden available opportunities. In some instances, we may seek to participate with other investors in acquisitions. After careful review of the opportunities available to us, we believe that shareholder value can best be enhanced through the continued pursuit of our strategic plan, rather than a liquidating distribution to shareholders.'
Mr. Caldarone added that the Company intends to continue to expand the operations of eCalton through internal growth and potential acquisitions of complementary businesses.
Additional information regarding Calton's strategic plan and other information concerning the Company is available at the Company's Web site: www.caltoninc.com.
Certain information included in this release and Company filings (collectively, the ``SEC filings') under the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended (as well as information communicated orally or in writing between the dates of such SEC filings) contains or may contain forward-looking information that is subject to certain risks, trends and uncertainties that could cause actual results to differ materially from expected results. Among these risks, trends and uncertainties are matters relating to national and local economic conditions, potential adverse effects of acquisitions, the ability of the Company to identify suitable acquisition candidates and the effect of government regulation on the Company.
Contact:
Calton Inc.
Anthony J. Caldarone, 732/212-1280
www.caltoninc.com |
