LAHA News: Spin Off Mortgage Operation
Lahaina Acquisitions to Spin Off Mortgage
Operation to Enhance Shareholder Value to Focus
Core Business on Mortgage Operations
ALPHARETTA, Ga.--(BUSINESS WIRE)--June 15, 2000--As a first step in a strategic plan to optimize shareholder
value, Lahaina Acquisitions today announced that it will become solely a real estate development and management company
by spinning off its mortgage operation into a separate public company which will be owned by its shareholders. The new
company will be named The Accent Group. Each Lahaina shareholder, as of the record date, will receive shares in The
Accent Group through a stock dividend.
Lahaina's Board of Directors approved the spin off in recognition that the two operations appeal to different market-makers,
attract different investment groups and command different price earnings multiples in the market.
``The Board is also acutely aware that management focus is one of the keys to improving productivity in any business and
the way to achieve more focus is to narrow the scope of the business,'' said Scott Demerau, Lahaina's CEO. ``Both the
mortgage and the real estate platforms are positioned to support explosive future growth and the spin off gives our
shareholders two value opportunities essentially for the price of one.''
Demerau also noted that a prospective acquisition candidate for the mortgage business will be more attracted to the
individual company that is totally focused on the candidate's business.
``We have removed a key barrier to growth through acquisition and simultaneously opened the door to dynamic new
management possibilities for both companies,'' commented Demerau. ``Everyone associated with the Accent spin off is
excited about the level of success that can be achieved by both companies as a result of the Board's action.''
Statements made in this press release, other than those concerning historical information, should be considered
forward-looking and subject to various risks and uncertainties. Such forward-looking statements are made based on
management's belief as well as assumptions made by, and information currently available to, management pursuant to the
`safe harbor' provisions of the Private Securities Litigation Reform Act of 1995. Lahaina Acquisitions, Inc. actual results may
differ materially from the results anticipated in these forward-looking statements as a result of a variety of factors, including
those identified in Lahaina Acquisitions, Inc. Annual Report on Form 10-K for the fiscal year ended September 30, 1999
and its Quarterly Reports on Form 10-Q filed with the Securities and Exchange Commission. |
