Interesting news on CCGI ... and buys passing as sells..
(PR Wires) DJ: ComTech Consolidation Group, Inc., Unveils New Developme
DJ: ComTech Consolidation Group, Inc., Unveils New Developments
HOUSTON, Feb. 17 /PRNewswire/ -- ComTech Consolidation Group, Inc., (OTC
Bulletin Board: CCGI) today announced that it moved ahead with plans to
restructure how it holds operating subsidiaries, repositioning them to move
forward on their own, while repositioning CCGI to pursue new business
opportunities.
Mr. Jim Thuney, CCGI's CEO explained, "ComTech recently completed the first
phase of its plan to enhance the value of its operating assets (stock of
wholly owned subsidiaries). ComTech formed three new stand alone Nevada
Holding Companies, one each for its operating divisions. Formed was, EISP
Capital Group, Inc., to hold Technical division assets, UDI Capital Group,
Inc., to hold Mental Health division assets, and PMP Capital Group, Inc., to
hold Home Health division assets. Having completed the first phase of the
plan, with operating assets now tucked under a new holding company, ComTech
is now free to pursue other business opportunities that has recently
developed."
Thuney went on to explain "ComTech is now in the second phase of the plan
which consists of taking each of the Nevada Holding Company's public by
means of a private placement of its stock under Regulation D, Rule 504 (Reg.
D). This allows each subsidiary holding company to raise up to $1 million in
funding from the sale of stock to further expand their respective business,
without further dilution to CCGI shareholders. When funded, phase three is
entered, to apply for an exchange listing for which each respective
subsidiary holding company may qualify. According to plan, each subsidiary
holding company will become a full reporting publicly traded company, each
developing its own market identity and market awareness, traded publicly on
its own merits. Based on the speed at which things have progressed,
management has reason to believe, that the listing process in its entirety,
can be completed before the end of the second quarter of 1999."
Thuney also went on to explain "According to ComTech's plan, as it
periodically liquidates shares of each new Nevada holding company, it will
declare periodic cash dividends to CCGI Shareholders from the net proceeds.
ComTech's related financial model indicates the initial ComTech stock
position in the entities will have a market liquidation value amounting to
roughly $1.00 each, or combined amount to approximately $3.00 per each
ComTech share."
Thuney also stated "In regard to the 1998 operating results, ComTech has
been advised by its Auditors, that it can expect the Annual Report to be
issued around March 15th. Based on preliminary numbers, ComTech's quarterly
sales have continued to steadily increase, from $294 thousand in the first
quarter to something on the order of $4.2 million in the fourth quarter,
amounting to quarterly sales growth exceeding 130% on average, largely
attributable to acquisitions consummated in the third and fourth quarters."
Statements regarding financial matters in this press release other than
historical facts are "forward-looking statements" within the meaning of
section 27A of the Securities Act of 1933, Section 21E of the Securities
Exchange Act of 1934, and as that term is defined in the Private Securities
Litigation Reform Act of 1995. The Company intends that such statements
about the Company's future expectations, including future revenues and
earnings, and all other forward-looking statements be subject to the safe
harbors created thereby. Since these statements (future operational results
and sales) involve risks and uncertainties and are subject to change at any
time, the Company's actual results may differ materially from expected
results.
/CONTACT: Richard A. Behlmann, President of ComTech Consolidation Group,
Inc., 888-556-3005/
13:01 EST
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