News: May 29, 2008 PINR to Acquire 100% Control of ServeNation
FORT WAYNE, IN, May 29, 2008 (MARKET WIRE via COMTEX) — Pine Ridge Holdings, Inc (PINKSHEETS: PINR) CEO Kevin May, announced today that additional negotiations with the majority owner of ServeNation culminated in the joint agreement for PINR to acquire 100% control of ServeNation.
“After further negotiations, ServeNation management decided that there would be strategic benefits for both parties to complete a transaction in which ServeNation will move completely under Pine Ridge Holdings,” stated May.
May continued, “I am very pleased for PINR shareholders that our Company was able to negotiate mutually agreed upon terms under which ServeNation would move fully under PINR. I believe this will be a very strategic move for our Company and a value added asset for our shareholders. All technology rights, revenues and operations will be under the control of PINR. I am very optimistic that PINR has taken advantage of this unique opportunity at the right time and the future will be very bright.”
“As stated in earlier releases, I believe our current goal of 500 orders per day is very attainable and probably on the conservative side. The current independent contractors look like they will easily surpass the 12/31/08 goal of 500 orders per day. Based on historical data, yearly revenues could well exceed $45 million. With PINR coming onboard to ServeNation from an operational standpoint, I believe we will be able to rearrange some of the effort and make things operate in an even more efficient and productive manner,” May further stated.
“Our research has shown that other business models such as ServeNation are carrying valuations in excess of 3 times total gross revenues. The initial goal of 500 orders per day will give a potential market valuation in excess of $150 million. This is why we are so excited to have ServeNation be part of PINR and is a major event for the future growth potential of Pine Ridge,” concluded May.
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