OMEGA COMMERCIAL FINANCE CORPORATION FILES 2014 10K PROVIDING A PROGRESS REPORT TO SHAREHOLDERS
MIAMI, FL -- (Marketwired) – May 18, 2015 -- Omega Commercial Finance Corporation (OTCPINK: OCFN) a publicly traded financial holding company recently reported its 2014 year-end 10K statement. This financial report is a required SEC discloser to the public necessary to maintain a fully reporting status. The document provides aggregate corporate data plus an itemization of all OCFN’s cash inflows received from its ongoing operations and external investment sources, as well as all cash outflows covering business activities and investments during a given quarter.
Management believes the report’s key analysis is compelling in that it illustrates the cash flow sources yielded them a net positive of $179,036 for 2014 up from $28,401 posted during the previous 2013 year-end. The main sources of cash flow stemming from the company’s operations highlights the following: (i) the ability to create revenue from traditional non-refundable advisory fees, (ii) the ability to execute direct private selling of the company’s capital stock, (iii) to possess options enabling the company to receive investments from small cap investment firms. Consequently, the specific hard dollar values from 2014 are:
$469,578 generated from non-refundable fees
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? $417,226 from selling OCFN convertible preferred series 2020 stock
? $337,056 through the issuance of convertible debentures.
? $210,000 through closing of strategic alliances
These key sources of revenue that generated cash flow for 2014 totaled $1,433,860, which is a critical discloser for a small cap company because it essentially illustrates OCFN’s ability to attract clients and investors even prior to operating at the company’s maximum potential level, which is achieved upon implementing its entire lending business model. Operationally the positive cash flow represents OCFN’s understanding of how to prudently manage the incoming and outgoing cash flow critical for sustaining operations during any given year.
While OCFN may not be earning a profit as reported on the income statement, it ultimately finished the year with more cash than when it started the previous year. That being said even profitable companies can fail to adequately manage their cash flow. This is why understanding the “Consolidation Statement of Cash Flow” is very important at this stage of OCFN’s growth because it illustrates to current and future investors that OCFN has demonstrated its ability to maintain an effective level of cash in order to sustain growth.
Jon S. Cummings IV President and Chairman of OCFN stated, “The management of cash flow is significant to nourish our continued momentum for success. Shareholders deserve to know how we are administering our cash flow derived from both ongoing operations and external investment sources, as well as our cash outflows. This illustrates our solvency and future evolution towards company goals and ultimately positioning OCFN for the NYSE.”
2014 -Key Operational Highlights
• Executed the acquisition of VeriTreck, the owner of Summit Real Estate Group which is a “cloud based” residential sales and brokerage firm that ended the year with $4.2-million in commission sales with net profits of $1.2 million. It is licensed in 7 states with licensed residential sales agents.
• Added L&W Title Company, through the acquisition of VeriTreck vertically capturing a potential revenue stream of legal fees generated from the title and closing process conducted by the real estate sales agents.
• Received $417,226 from the sale of OCFN Series 2020 Convertible Preferred Stock
• Experienced the reduction of derivative liabilities from convertible debentures from $1,848,299 to $380,642, which has had a direct effect on the market price decline.
2015- Recent Key Operational Highlights
• As of April 15th 2015 the company executed a strategy alliance with an investor/partner to structure Omega CRE Investment LLC that will consolidate $88-million in free and clear real estate to OCFN’s balance sheet with operations to acquire core and none commercial real estate assets and mortgages.
• As of May 5th 2015 the company executed a definitive share exchange agreement to acquire Branca Ribeiro Representacoes Ltd a Brazilian Timber Company with free and clear real estate appraised at $300-million with an estimated current cash flow of $23-million in EBIDTA at 30% profit margins.
• As of May 16, 2015 the company executed a definitive share exchange agreement to acquire 100% of a proven commercial real estate investment company in which the agreement becomes effective only upon OCFN achieving an up-listing to NYSE. More importantly, once acquired the company currently owns and occupies cash flowing properties of hospitability, multifamily, and retail fast-food franchises. Hence the aggregate value of these properties and businesses are estimated at $400-million with topline revenues of $100-million.
Collectively through the consolation of the acquired assets as accomplished over these current and past highlights, OCFN has the potential to amass $788-million for its balance sheet and a potential $130-million in topline revenues. This illustrates management’s extraordinary vision to create and facilitate the structuring of a consolidated balance sheet with various synergistic none core business real estate assets coupled with cash flowing mechanisms to support the lending platforms for the company’s core subsidiaries.
In short the significance to all of this is that OCFN is striving to become a dynamic financial holding company primed for access to valuable capital with prudent leverage so its diverse subsidiaries can directly lend capital, continue to seek out strategic acquisitions of assets, and expand key real estate service oriented subsidiaries in the brokerage, sales, and title market.
Finally, Todd Buxton, CEO of Omega Commercial Finance Corp. states, “We believe through our current conversations with a couple of well-respected legal firms whom have represented other companies for their up-listings to larger exchanges have given us the comfort level and conclusion that we can achieve the Standard 2 category for the NYSE listing requirement by year-end. This of course can be accomplished once all the appropriate filings, corporate governance, and compliance procedures are satisfied.”
About OCFN
Omega Commercial Finance Corporation is a publicly traded financial services holding company with its principal companies operating in the commercial real estate, finance, real estate sales and brokerage, and capital markets sector. As a holding company, OCFN collectively along with its subsidiaries' management teams have a combined 150 years of experience and knowledge across these lines.
Safe Harbor
This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements include all statements that are not statements of historical fact regarding the intent, belief or current expectations of Omega Commercial Finance Corp., its directors or its officers with respect to, among other things: (i) financing plans; (ii) trends affecting its financial condition or results of operations; (iii) growth strategy and operating strategy. The words "may," "would," "will," "expect," "estimate," "can," "believe," "potential", “project” and similar expressions are intended to identify forward-looking statements. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties and that actual results may differ materially from those projected in the forward-looking statements.
Omega Commercial Finance Corporation
VP of Capital Markets
Dave Demarest
305-537-9660
