I got this from the WSJ Interactive
Maybe I'm missing something, but it looks like this is only good news for holders as of 10/7. Other than that, CDMD is now a smaller company with nothing to show for it divestiture. I would expect the stock to trade for less after 10/7.
Command Credit Sells First Equities And Its "Lease-A-Home"
Program To Cenna Communications
GARDEN CITY, N.Y.--(BUSINESS WIRE)--Oct. 8, 1996--Command Credit Corp.
(OTC-CDMD), announced today the sale of First Equities Corp., a wholly-owned mortgage
banking subsidiary to Cenna Communications Group Inc. (Cenna), a publicly listed company.
Cenna represents a tri-state area mortgage banking company that is doing business at a rate of
$20 million in mortgage originations per month, and currently reports a $12 million asset base.
Cenna plans to change its name to First Equities Corp. and will operate independently of
Command. Command will receive 400,000 shares of the newly acquired First Equities Corp.,
which will be distributed to the Command shareholders of record as of Oct. 7, 1996.
Edward R. Capuano, CEO and chairman of Cenna said that "This is a good acquisition for Cenna
in that it brings them a new product, the 'Lease-A-Home' program that Command developed. This
added to the current rate of growth in obtaining new mortgages is synergistic to the overall growth
of the company. We are taking the First Equities Corp. name since we believe it best describes the
nature of our business."
William Lucas, chairman of Command stated that "The Board of Directors of Command decided
to sell First Equities Corp. including its name to Cenna in an effort to create a greater value for the
shareholders, reduce overall corporate expenditures and overhead, and allow the company to
better focus on its remaining wholly-owned subsidiaries."
Command Credit Corp. is an international financial services company that owns and operates five
divisions, which includes a major bank credit card servicing center.
CONTACT: Command Credit Corp., Garden City
Investor Relations, 1-800-338-9199 |
