IVSO Investco, Inc. Receives Cash Tender Offer
BOCA RATON, Fla.--(BUSINESS WIRE)--April 4, 2002--Investco, Inc. (OTCBB:IVSO - news), (formerly Intraco Systems, Inc. - OTCBB:INSY) a provider of financial guarantees and other various financial services, announced today that it has received a cash tender offer from First International Finance Corporation (FIFC), a Miami based financial services company that currently owns approximately 26% of Investco, Inc.
According to the terms of the tender offer received, FIFC intends to acquire at least 95% of Investco's stock that is not presently owned by FIFC (26%) and Mercury Surety & Insurance Company (70%), at a price of $10.00 per share. Based on the offer, FIFC intends to acquire at least 950,000 shares of the company's stock for cash. The 950,000 shares would come from the approximately 499,114 shares in the public float and approximately 500,000 shares of restricted shares currently being held by investors.
FIFC has deposited $10 million in cash with BNP Paribas SA bank that will be used exclusively for the tender offer of Investco shares. The company has confirmed the account through its trustee and has scheduled an immediate Board of Directors meeting to discuss the tender offer, but management expects that Investco will cooperate fully and promptly with FIFC. The company will be helping coordinate the tender offer, assist in the SEC filings and establishing the necessary escrow accounts to accommodate the tendering of shares by the investors wishing to accept the cash tender offer. We anticipate issuing the tendering instruction details within the next several days.
About Investco, Inc.
Investco, Inc., formerly Intraco Systems, was founded in 1980. In December 2001, the company exchanged convertible preferred stock for $15 million of Anglo American plc stock (``AAUK'') and is now using these assets to offer financial guarantees and various financial services products to companies and accredited investors. On March 14, Investco acquired Mercury Surety and Insurance Company, Ltd. adding $100 million to its shareholder equity base via the issue of a new series of convertible Preferred Stock convertible into common stock at $5 per share. For more information, contact Investco, Inc. at 4400 N. Federal Hwy. Suite 301, Boca Raton, FL 33431, USA at Tel: 561/750-6575, Fax: 561/750-7221, or email them at info@investco.info.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: The statements which are not historical facts contained in this press release are forward-looking statements that involve certain risks and uncertainties including but not limited to risks associated with the uncertainties of future financial results, additional financing requirements, developments of new products, government approval processes, the impact of competitive products or pricing, technological changes, the effect of economic conditions and other uncertainties detailed in the company's filings with the Securities and Exchange Commission.
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