Wednesday July 22, 8:09 am Eastern Time
Company Press Release
ARET Subsidiary to Approach $30 Million in Mortgage Funding
LENEXA, Kan.--(BUSINESS WIRE)--July 22, 1998--AmeriResource Technologies Inc. (OTC BB:ARET) announced Wednesday an update on the substantial progress that has been taking place at its wholly owned subsidiary, First American Mortgage Co. (''FAMC'').
Recently, FAMC has secured $10 million in mortgage funding through a pilot program with the Chicksaw Nation, PMI Mortgage Insurance Co., Freddie Mac [NYSE:FRE - news] and FT Mortgage Companies. Two additional tribes are within 30-60 days of finalizing their commitments. This will allow FAMC to process $30 million in mortgages from this program, which will build approximately 420 new homes on an annual basis. The company anticipates FAMC to generate $750,000 in revenues per year from the processing of these mortgages. The company, through its joint venture and subsidiary Cottonwood Development Corp., will be the General Contractor on the construction of a minimum of 200 of the homes built, generating an additional estimated $15 million in revenues per year. FAMC is a Native American residential lending and consulting company.
Delmar Janovec, president stated: ''We are extremely excited about the potential of what we are doing. In a short period of time we have worked or are currently working with 8 out of 28 Native Nations in Oklahoma and secured substantial mortgage funding for Native Americans. The company is now positioned to be a fully integrated manufacturer, developer and mortgage originator on homes built for Native Americas.''
The company also announced that it has completed some critical tasks as part of its restructuring. Janovec stated: ''With our financial reports being current, the successful completion of some of our remaining bankruptcy issues and the progress of our subsidiaries, we are now ready to aggressively grow the company. We have identified several acquisitions that we feel will enhance revenues, generate earnings and increase shareholders' value. It is our intention to increase shareholder communications, public relations and the proper dissemination of our news as we enter this period of growth.''
AmeriResource Technologies Inc. is a holding company that, through its subsidiaries, is a full service mortgage, consulting and design/construction firm based in Lenexa, specializing in management services and economic development both within and
outside of Native American communities.
Contact:
Dick White or Barry Denslow
Telephone, 913/859-9292
Fax, 913/859-9520
OR
Robert Solarchik
800/913-9767
954/346-5796 |
