Tuesday April 7, 8:30 am Eastern Time
Company Press Release
SOURCE: ComTech Consolidation Group, Inc.
ComTech Consolidation Group, Inc. Announces Purchase of Health Care Consortium
HOUSTON, April 7 /PRNewswire/ -- ComTech Consolidation Group, Inc. (OTC Bulletin Board: CCGI - news), today announced the purchase of a consortium of Houston based specialty health care service providers, consolidated under Unique Dawning, Inc., (UDI), a Texas corporation. The transaction worth approximately $5.25 million, consists of ComTech Consolidation Group, Inc., issuing 500,000 shares of its restricted common stock and 50,000 shares of its Class A Preferred stock to UDI shareholders. The UDI consortium represents five unique operating health care centers and is on track to exceed sales revenue of $8.5 million for 1998, while maintaining historical EBIT (earnings before income tax) around 15%.
ComTech Consolidation Group, Inc., is a consolidation company that is aggressively seeking out well managed home health care companies with expansion capabilities for consolidation/acquisition.
Mr. Roger R. Stewart, CEO and Chairman of ComTech, stated, ''The planned addition of UDI played a large part in setting forth our forecast for 1998, with sales revenue at $10.5 million with EBIT at $1.8 million. We feel strongly, that UDI with its growth history of doubling sales annually, will have a favorable effect on realizing that forecast, as well as in the years to come. UDI has truly defined and is filling a market niche for health care services. Our industry research indicates few, if any, smaller or even larger healthcare providers approach the outpatient market as does UDI with its one stop center for health care services.''
Mr. Winfred Fields, CEO and Chairman of UDI, also stated, ''With ComTech's assistance, UDI's expansion capabilities are greatly enhanced. Our approach to servicing the market presents tremendous expansion opportunities and with ComTech's help, we look forward to capitalizing on this window of opportunity.''
Statements regarding financial matters in this press release other than historical facts are ''forward-looking statements'' within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and as that term is defined in the Private Securities Litigation Reform Act of 1995. The Company intends that such statements about the Company's future expectations, including future revenues and earnings, and all other forward-looking statements be subject to the safe harbors created thereby. Since these statements (future operational results, and sales) involve risks and uncertainties and are subject to change at any time, the Company's actual results may differ materially from expected results.
SOURCE: ComTech Consolidation Group, Inc.
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