To all:The announcement is out!!
estmark Group Holdings and Medical Industries of America
Announce Plans for the Execution of Stock Settlement Agreement to
Implement Growth Strategies
DEL RAY BEACH, Fla., Jan. 27 /PRNewswire/ -- Westmark Group Holdings, Inc. (Nasdaq:
WGHI) and Medical Industries of America, Inc. (Nasdaq: MIOA), formerly Heart Labs of
America, jointly announced today that they have reached an agreement whereby the debt and
equity positions that each company currently holds in the other has been successfully restructured.
Under the terms of the agreement, Medical Industries will return 1.6 million common shares to
Westmark. In addition, 200,000 preferred shares of WGHI, with a stated value of $700,000, will
also be returned to Westmark. This will reduce Westmark's common shares outstanding from 4.7
million to 3.1 million.
Conversely, Westmark, will return to Medical Industries 200,000 convertible preferred shares of
MIOA, valued at $2,000,000. Medical Industries has further agreed to accept a note from
Westmark amortized over ten years for up to $3,653,000 with a balloon payment in three years,
together with a cash payment of $300,000. The note provides for a certain discount based upon
the initial cash payment received from Westmark of up to $2 million and up to 400,000 common
shares of WGHI.
According to Mark Schaftlein, Chief Operating Officer of Westmark, "With the resolution of this
Medical Industries transaction, Westmark has now addressed the major issues facing the
company. This will enable us to focus our efforts on our core business of buying and selling
non-conforming B/C credit mortgages. Although we have sincerely valued the support by MIOA,
we each intend to focus future interest on growth opportunities within our respective target
industries."
Based in Del Ray Beach, Florida, Westmark is a holding company whose subsidiary, Westmark
Mortgage Corporation, is primarily engaged in purchasing non-conforming loans. Green World
Technologies is another wholly owned subsidiary which distributes energy saving devices.
/CONTACT: Alan Adelson, Investor Relations of Westmark Group Holdings, Inc.
800-240-2014; or Ira W. Miller or Omar Sanchez of I.W. Miller & Co., Inc., 714-833-9001/ |
