Pine Ridge Holdings Announces Plan for Spin-Out
Date : 06/20/2008 @ 1:32PM
Source : MarketWire
Stock : Pine Ridge Holdings, Inc. (PINR)
Quote : 0.0006 0.0003 (100.00%) @ 3:58PM
Pine Ridge Holdings Announces Plan for Spin-Out
FORT WAYNE, IN CEO Kevin May announced today spin-out plans for ServeNation and a potential future dividend.
Over the last several weeks much time has been spent examining how best to take advantage of the ServeNation holding. Although there is no question in our minds that ServeNation could be a strong long-term hold, we also realize that with the potential valuation model for Internet-based companies, the opportunity to market ServeNation is also a viable option.
As a result we have already started working with a local M&A consultant to assist in the valuation model and marketing of ServeNation. A simple yet accurate financial model has been built in that for every 50 orders per day on the ServeNation site, the value of for PINR holding increases by $20 million. As soon as sales reach 100 per day, we will begin the process of marketing ServeNation for sale.
ServeNation is currently averaging 10 orders per day. It is now management's goal to shift from a long-term growth plan to a short-term sales burst. More details about the M&A group in future press releases.
Proceeds from the sale of ServeNation will of course be used to acquire additional holdings. However, to show just how strongly management is focused on shareholder value, a portion of the sale of ServeNation will be allocated as a dividend -- almost unheard of among Pink Sheet companies.
May commented, "Every step we have taken has been to increase shareholder wealth. I knew on day one that ServeNation could be the cornerstone of PINR. I believe that we can grow the value of the company in just the next few months to $40 million. At that point, all effort will be employed to sell ServeNation."
May continued, "To keep our shareholders abreast of each step towards the sale and the unprecedented dividend this potentially represents, we will be providing regular updates on the PINR website. When I started PINR, I knew that the shareholders were the key to our success and I intend to reward them for their loyalty. I want to be upfront about our goals and then share on a regular basis our progress towards our goals."
Additionally, the Company has accepted the resignation of Brian Kistler and New Opportunity Business Solutions as the company's corporate financial and communications advisor. The Company intends to announce a new IR firm at a subsequent date.
This press release contains certain "forward-looking" statements, as defined in the United States Private Securities Litigation Reform Act of 1995 that involve a number of risks and uncertainties. Statements, which are not historical facts, are forward-looking statements. The Company, through its management, makes forward-looking public statements concerning it expected future operations, performance and other developments. Such forward-looking statements are necessarily estimates reflecting the Company's best judgment based upon current information and involve a number of risks and uncertainties, and there can be no factors that could cause actual results to differ materially from those estimated by the Company.
They include, but are not limited to, the Company's ability to develop operations, the Company's ability to consummate and complete the acquisition, the Company's access to future capital, the successful integration of acquired companies, government regulation, managing and maintaining growth, the effect of adverse publicity, litigation, competition, sales and other factors that may be identified from time to time in the Company's public announcements.
Contact:
Pine Ridge Holdings, Inc.
Kevin May
President/CEO
260-637-1551
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