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Monday February 22, 4:35 pm Eastern Time
Company Press Release
Fronteer Financial Holdings, Ltd. Announces Subsidiary Name Change and Business Expansion
DENVER--(BUSINESS WIRE)--Feb. 22, 1999--Fronteer Financial Holdings, Ltd. (Fronteer) (OTC BB: FDIR - news) announces its plan of transformation of several of its subsidiary businesses into an Internet and on-line based operations business.
The first transformation is to be eBanker USA.com, Inc.
Fronteer Development Finance Inc. (Fronteer Development), a subsidiary of Fronteer, after a merger into a Colorado corporation formed solely in order to facilitate Fronteer Development becoming a Colorado corporation and to effectuate a name change, will be known as eBanker USA.com, Inc. (eBanker). During 1998, eBanker USA.com, Inc.'s predecessor raised approximately $10 million in a private placement of equity and convertible debentures. To date, the proceeds have been primarily invested in high quality and high yield corporate convertible bonds, and in extending loans to public reporting companies. The market value of the convertible bonds currently exceeds carrying value, and loans to one public reporting company have resulted in potential unrealized gains from warrants in excess of $15 million, based on last Friday's closing price of the related stock.
eBanker plans to develop its on-line services, including debt financing for private and public companies in the small-cap to mid-cap range. eBanker's debt financing may, without limitation, take the form of senior debt, mezzanine debt, subordinated debt, and convertible debt, with or without collateral, in various types of lending transactions.
In addition, eBanker plans to expand its lending strategies to operate as an on-line Internet service for individuals with a high net worth, and for smaller publicly traded corporations. eBanker plans to divide its financing services into four main categories consisting of credit cards, securities financing, liquidity facilities, and real estate development finance.
Fronteer owns American Fronteer Financial Corporation (AFFC), a regional securities broker/dealer headquartered in Denver with branches in Albany, Chicago, West Palm Beach, Atlanta, Reston, Virginia, New Orleans, Dallas, Colorado Springs, New York, San Francisco and Las Vegas.
Fronteer is a Denver-based holding company with consolidated entities that include AFFC, Secutron Corp., a computer hardware seller and software developer, and Fronteer Development, which will become eBanker USA.com, Inc.
The statements included in this press release concerning predications of economic performance and management's plans and objectives constitute forward-looking statements made pursuant to the safe harbor provisions of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended. These statements involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements.
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