Aquisition and Disposition of assests..In Responce to Rosario Question ITEM 2. ACQUISITION OR DISPOSITION OF ASSETS
On June 29, 1998, AmeriResource Technologies, Inc. (the "Company")
entered into an Agreement For the Exchange of Stock (the "Agreement") with First
Americans Mortgage Corporation, a Missouri Corporation ("FAMC") and its
shareholders. The Company issued a total of Seventy Million (70,000,000) shares
of its common stock $.0001 par value, in exchange for 100% of FAMC's issued and
outstanding shares of common stock.
The FAMC shareholders included Delmar Janovec, the Company's president,
Tomahawk Construction Company, a wholly owned subsidiary of the Company and
Dustan Shepherd. On July 20, 1998, the Company delivered Twenty-Five Million
(25,000,000) shares to Dustan Shepherd in exchange for Fourteen Thousand Seven
Hundred (14,700)FAMC shares, One Million (1,000,000) shares to Tomahawk
Construction Company in exchange for Seventy (70) FAMC shares and Forty Four
Million (44,000,000) shares to Delmar Janovec in exchange for Fifteen Thousand
Two Hundred Thirty (15,230) FAMC shares. The Company did not rely on any
specific principle in determining the amount of consideration paid for its 100%
interest in FAMC.
The Company considered the potential earnings of FAMC, its current
financial condition FAMC's ability to secure funding in order to process
mortgages and many other factors regarding the Company's current capitalization
in determining the consideration it paid for the FAMC shares. The Company's
beliefs concerning FAMC's ability to obtain funding came to fruition subsequent
to the signing of the Agreement when FAMC secured Ten Million ($10,00,000)
dollars in funding through a pilot program with the Chickasaw Nation, PMI
Mortgage Insurance Co., Freddie Mac and FT Mortgage Companies. The Company also
has reason to believe that FAMC is within 30 to 60 days of obtaining $20,000,000
in additional funding through two other tribes. The above factors are believed
to be worth the market value of the Seventy Million (70,000,000) shares of the
Company's common stock as quoted on the NASDAQ Bulletin Board on June 29, 1998.
On June 29, 1998, the Company's shares were trading at approximately $.02 per
share while the Company's book value per share was $0. The Company's Board of
Directors believes that the acquisition of FAMC is worth about $1,400,000 based
upon its potential to generate revenues and supplement the Company's current
construction services which target Native Americans.
The Company acquired FAMC in an effort to supplement its construction
services. FAMC is a mortgage company specializing in providing financing for
Native Americans to purchase new or existing housing and for rehabilitating
housing projects. The Company's plans include building homes for Native
Americans through its construction subsidiaries and providing financing through
FAMC. The Company's intentions are to provide all the necessary services to
enable Native Americans to obtain affordable housing which will include both
construction and financing. The Company anticipates that the acquisition of FAMC
may enable the Company to increase revenues, generate earnings and increase
shareholder value. |
