First Guardian Financial Corporation Addresses Shareholders Concerns and Current Events
NEW YORK, Sep 14, 2006 (BUSINESS WIRE) -- First Guardian Financial Corporation (Pinksheets: FGFC), today will address shareholder questions and concerns, the company will also address the current business operations.
The company as previously announced has fully executed the contract to acquire 50 acres of prime land located in Woodstock, Ontario Canada approximately 750 feet from the new Toyota Motors Plant, the contract price is $60,000 dollars (Canadian) per acre for a total of $3,000,000 (Canadian), the company has tendered its required deposits of $80,000 (Canadian) and anticipates that we will either sell our rights in the contract for a significant profit or take possession of the property either on or before December 7, 2006. The project is a joint venture with a Canadian firm (yet to be named) with FGFC as the majority partner (51%).
The company's Buysellmerger.com site is behind schedule due to some technical problems that are being worked out, a preview (work in process) can be viewed at buysellmerge.com we will release the site to the public (phase one) when we are satisfied with the appearance and function ability. The company believes that the portal can pay for its self or even generate a profit, although the real motive for the portal is to generate leads for the company's lending activities.
The company is actively lending money through its Windsor Capital Unit to select projects (those that meet the criteria of the company's lending parameters). The company derives income in several ways, fees the company charges from 2% to 5% of the loan amount and also realizes income from the amount that the company pays for the money (warehouse line of credit) and what it charges the borrower i.e. we pay 8% and charge the borrower 12% the company receives the 4% spread on a monthly basis for the life of the loan, the company only will lend short term 2 years or less so we can continue to turn the funds over for more fees, we will only lend to commercial projects at a maximum LTV of 65% (low risk) with proven cash flows to service the debt. The company has several million dollars lent (in its portfolio) at this time and we will be continuing to increase that amount aggressively.
The company's Trafalgar Leasing unit is in the process of getting underway with securing a 50 million dollar warehouse line of credit, infrastructure to service the leases (collect payments etc.) either in house or outsourced and putting together our marketing team, we anticipate this unit to be producing revenues within the next two months or so.
The company's unit for acquiring distressed loan portfolios is also in the start up stages with personal and infrastructure being put in place. It is going to be from an investment stand point only meaning that the company will acquire the distressed portfolios and outsource the collection activities etc. as this is the most cost effective for the company and will yield the greatest returns i.e. if we pay 20 cents on a dollar and another 20 cents on a dollar collected by the out sourcing company with an average recovery rate of 80 cents on a dollar that will result in a 40% return to the company.
The buyback of shares on the open market is on going and will be announced each time we complete a block buyback and retire them, the reason for this process is to keep legal fees at a minimum as each time we retire a block the required resolutions need to be filed with the State of Delaware.
Finally the company is working on its audited financial statements and expects to have them by the end of the calendar year, the reason for this is to present the company in its best financial light as it gives us time to increase lending activities (revenues) get buysellmerge.com running correctly and the land acquisition (we will make a profit on a flip or own the property which will certainly bolster the financial statements as we feel with the anticipated low float after the buy back will give the company better credibility when we file to trade on the OTCBB.
"We have taken this opportunity to give a kind of a state of the company overview as we want to keep the shareholders up to speed as to what the company is doing and how it's progressing, we are a new fledging company that has just started out in February and have been methodically building a foundation for a successful company. I would also like to address certain references to Mr. Hayter, he is not associated with our company as certain shareholders have eluded to we bought his shares out and the only involvement he did have was that he sold us the company (shell) and that is it. The company philosophy is to announce what we are going to do and then announce when it has been done, we do not believe in announcing business activities that do not have a better than reasonable chance of happening or won't , I hope that we have shed some light on our company and direction today," said Abraham Rosenman President & CEO
About First Guardian Financial Corporation:
The company is a Financial Holding Company currently providing Commercial Real Estate Financing & Invests for its own portfolio in small to mid sized businesses. Its primary goal is to provide short term financing within the commercial real estate market and invest and or provide secured short term financing to businesses either in the start up stage or growth stage throughout the United States.
SOURCE: First Guardian Financial Corporation
CONTACT: First Guardian Financial Corporation Investor Relations, 212-572-4823 Fax: 212-572-6499 ir@guardianfinancialcorp.com www.guardianfinancialcorp.com
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