HOWARD
JUST FOUND GOING OVER WIRE.......................................
FOR IMMEDIATE RELEASE-FRIDAY, FEBRUARY 7, 1997
GENESIS INTERNATIONAL FINANCIAL SERVICES,INC.
CHATTANOOGA, TN
GIFS AGREES TO SELL UNIT FOR $117 MILLION:
TEN YEAR DEAL TO GENERATE OVER 50 CENTS PER SHARE, PER YEAR IN EARNING
(CHATTANOOGA, TN) GENESIS INTERNATIONAL FINANCIAL SERVICES, INC.,
(GIFS-NASDAQ-BB) ANNOUNCED TODAY THAT IT HAS REACHED AN AGREEMENT IN PRINCIPAL WITH AN INTERNATIONAL INVESTMENT GROUP LED BY SUISSE PRIVATE BANLING, LTD AND INTERFINANCE BANKING GROUP, REPRESENTING A GROUP OF EUROPEAN ANS ARABIC INVESTORS, TO SELL ITS MAJOR OPERATING UNIT (CRIC)
FOR $117 MILLION. GIFS WILL EMERGE OUT OF THE CRIC SALE RETAINING OWNERSHIP OF THE MILLER MOUNTAIN GOLD MINING OPERATION, GUARANTEE SETTLEMENT CORPORATION, INC., AND LONGHORN ENERGY CORPORATION, INC.,
PRESENTLY HELD BY CRIC. THE CONTROL AND OWNERSHIP OF OTHER GIFS SUBSIDIARIES WILL NOT BE AFFECTED.
THE TRANSACTION WILL BE STRUCTURED AROUND A FULLY COLLATERALIZED INTERNATIONAL PROMISSORY NOTE, A LONG TERM CONSULTING CONTRACT, AND A INTERNATIONAL SECURITY AGREEMENT BONDED BY A MAJOR EUROPEAN CARRIER. THE PARTIES HAVE ENTERED INTO A COMMITMENT TO CLOSE THE TRANSACTION WITHIN 45 DAYS.
THE TRANSACTION, WHEN CLOSED ON SCHEDULE, WILL BEGIN GENERATING INCOME FOR GIFS IN THE SECOND QUARTER, ACCRETING OVER 43 CENTS PER SHARE TO GIFS BOTTOM LINE FOR 1997 AND OVER 58 CENTS PER SHARE FOR THE 9 YEARS, THEREAFTER.
GIFS PRESIDENT AND CEO, MOHAMED KHAIRY MOHAMED ZAYED,11, STATED THAT
"THIS TRANSACTION WILL ACCELERATE OUR EARNINGS AND REVENUE GROTH FOR THE BENEFIT OF OUR SHAREHOLDERS AND SUBSIDIARIES. IT WILL PROVIDE A RELIABLE INCOME STREAM TO INTERNALLY FUND SEVERAL OF OUR ONGOING PROJECTS AND ALLOW US TO PURSUE MORE AGGRESSIVELY SEVERAL PRESENTLY INCOME PRODUCING ACQUISITION TARGETS CURRENTLY UNDER CONSIDERATION.
GENESIS INTERNATIONAL FINANCIAL SERVICES, INC., |
