Znomics, Inc. Announces Issuance of Controlling Interest in Company
PORTLAND, Ore., Feb 10, 2010 (GlobeNewswire via COMTEX) -- Znomics, Inc. (OTCBB:ZNOM) today announced the issuance of 75% of the fully diluted capital stock of Znomics to affiliates of Cherry Tree, a financial advisory firm offering investment banking, investment management and wealth management services based in Minneapolis, MN (collectively, the "Purchasers").
Znomics issued 40,811,886 shares of common stock to the Purchasers for total consideration of $125,000, paid in cash at closing.
The stock purchase agreement and related transactions were approved by the Board of Directors of Znomics and by shareholders who owned a majority of the outstanding shares of Znomics common stock prior to the issuance of the new shares.
Znomics is currently a "shell company" as defined by the Securities Exchange Act of 1934. It is expected that the Purchasers will use Znomics to acquire an operating business, but no specific acquisition discussions are under way and the Purchasers expect the acquisition process could take several years.
As part of the transaction, the shareholders have elected a new Board of Directors, which includes Tony J. Christianson and Gordon F. Stofer, founders and co-managing partners of Cherry Tree, John C. Bergstrom, managing partner of RiverPoint Investments and Kerry D. Rea, former Chief Financial Officer of Znomics. The new Board of Directors appointed Mr. Christianson as Chairman, Mr. Stofer as Chief Executive Officer and David G. Latzke, a Managing Director at Cherry Tree, as Chief Financial Officer and Secretary.
Simultaneous with the issuance of this press release, Znomics filed a Form 8-K with the Securities and Exchange Commission outlining the acquisition and related transactions, including exhibits.
Certain statements found in this press release may constitute "forward-looking statements," which reflect the speaker's current views with respect to expectations and future events and include any statement that does not directly relate to a current or historical fact. The forward-looking statements in this press release include the expectation that the Purchasers will use Znomics to acquire an operating business and the anticipated timeline for that process. Forward-looking statements cannot be guaranteed and actual results may vary materially due to the uncertainties and risks, known and unknown, associated with such statements. Examples of risks and uncertainties relating to the forward-looking statements in this release include, without limitation, the Purchasers' ability to identify a viable candidate for a reverse merger transaction with Znomics and to successfully negotiate and complete the transaction.
This news release was distributed by GlobeNewswire, www.globenewswire.com
SOURCE: Znomics, Inc.
|Name ||Description |
|Christianson, Anton || |
Anton J. (Tony) Christianson has served as chairman and member of board of directors of Cherry Tree Acquisition Corp since inception. Mr. Christianson is a co-founder and chairman of Cherry Tree Companies, which he formed with Mr. Stofer in 1980. He is also the chairman of its affiliates: Cherry Tree Investments (a Registered Investment Advisor), Cherry Tree & Associates, LLC (a FINRA licensed broker-dealer) and Cherry Tree Family Office (a Registered Investment Advisor). Mr. Christianson has spent more than 30 years in the venture capital and private equity communities in a variety of capacities. He has been the managing partner of several partnerships ("Cherry Tree Ventures") that were focused on investing in entrepreneurially-managed companies. Most recently, this included Cherry Tree Ventures IV, which has had two significant initial public offerings within the last two years: Capella Education Company (NASDAQ: CPLA) and Dolan Media Company (NYSE: DM). In these partnerships, Mr. Christianson was responsible for making and monitoring investments and for reviewing strategic direction for all portfolio companies. From 1978 to 1980, he was an investment officer and vice president of Northwest Growth Fund (predecessor to Norwest Equity Partners and Norwest Venture Capital). From 1972 to 1974, he worked for Arthur Andersen as a systems analyst in their consulting practice. He currently sits on the boards of Dolan Media Company (NYSE: DM), Fair Isaac Corporation (NYSE: FIC), Titan Machinery Inc. (NASDAQ: TITN), Peoples Educational Holdings (NASDAQ: PEDH) and AmeriPride Services Inc. Mr. Christianson received the Outstanding Director of the Year from the National Association of Corporate Directors in 2002 and was a finalist for the Entrepreneur of the Year Award in 1994. He graduated with a B.A. from St. John's University, Collegeville, MN and earned an M.B.A. from Harvard Business School, where he was a Baker Scholar.
|Stofer, Gordon || |
Gordon F. Stofer has served as chief executive officer and member of board of directors of Cherry Tree Acquisition Corp since inception. Mr. Stofer is a co-founder and chief executive officer of Cherry Tree Companies which he formed with Mr. Christianson in 1980. He is also the chief executive officer of its affiliates: Cherry Tree Investments, Cherry Tree Securities and Cherry Tree Family Office. Mr. Stofer has spent more than 30 years in the venture capital and private equity industries in a variety of capacities. He has been the managing partner of several partnerships that were focused on investing in entrepreneurially-managed companies. Most recently, this included Cherry Tree Ventures IV, which has had two significant initial public offerings within the last two years: Capella Education Company (NASDAQ: CPLA) and Dolan Media Company (NYSE: DM). In these partnerships Mr. Stofer was responsible for making and monitoring investments, as well as coordinating all fund raising and investor relations related to the funds. From 1977 to 1980, he was an investment officer and vice president of Northwest Growth Fund. Prior to that, from 1975 to 1977, he was a marketing manager for Honeywell in their energy management division. From 1970 to 1972, he served as an officer aboard a destroyer in the United States Navy. During his investment career, Mr. Stofer has been a director of over 30 private and public companies and has served on numerous public company boards and related committees. He currently sits on the boards of Insignia Systems Inc. (NASDAQ: ISIG) and VEE Corporation (Sesame Street Live). Mr. Stofer has been a past president of the Minnesota Venture Capital Association, received the Outstanding Director of the Year from the National Association of Corporate Directors in 1997 and was a finalist for the Entrepreneur of the Year Award in 1994. Mr. Stofer received a B.S. in Engineering from Cornell University with an engineering degree and an M.B.A. from Harvard Business School, where he was a Baker Scholar.
|Latzke, David ||David G. Latzke has served as senior vice president, finance of Cherry Tree Acquisition Corp since inception. Since January 2007, Mr. Latzke has been a managing director at Cherry Tree Companies working in the investment management and investment banking divisions. His focus is on strategic advisory services to both private and public companies as well as M&A and capital market transactions. From June 2006 until joining Cherry Tree in January 2007, Mr. Latzke provided consulting services to small and middle market companies. His clients included software, technology, and manufacturing and distribution companies. From April 1993 to June 2006, Mr. Latzke served as senior vice president, chief financial officer and secretary of SoftBrands, Inc. (AMEX: SBN), a provider of enterprise software and related professional services. SoftBrands acquired Fourth Shift Corporation (NASDAQ: FSFT), where Mr. Latzke served as chief financial officer, in April 2001. From June 1982 to April 1993, Mr. Latzke was at Arthur Andersen & Co. serving both closely held entrepreneurial companies and public registrants. As an advisor and public company chief financial officer, Mr. Latzke has had the opportunity to lead numerous financings, capital transactions, acquisitions and divestiture transactions and restructuring projects. He received a B.A. in Accounting from the University of Northern Iowa and is a Certified Public Accountant. |
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