First Guardian Financial Corporation Board Moves to Reduce Authorized Shares & New Common Share Structure
Wednesday June 7, 10:25 am ET
NEW YORK--(BUSINESS WIRE)--June 7, 2006--First Guardian Financial Corporation (Pink Sheets: FGFC - News) today reported that its Board of Directors has adopted a resolution on Tuesday, June 6, 2006, to reduce the Company's authorized shares of common stock by 320 million shares.
The reduction will lower First Guardians Financial Corporations authorized common shares from 520 million to 200 million of which (101,252,132 shares are restricted and in managements control) leaving 98,917,952 common shares available. "This resolution reflects the commitment of First Guardian Financial Corporations management and Board of Directors to restrict any dilution and build value for our current and future shareholders," commented Abraham Rosenman, President
The company has issued an additional 59,681,800 million common shares for the acquisition of Buysellmerge.com, Windsor Capital Ltd. and the establishment of Trafalgar Leasing & Finance Corporation thus after the issuance of said shares the current issued and outstanding/float stands at 78,331,916 shares.
At the same meeting, the board of directors agreed to review certain proposals to establish/obtain a revolving line of credit of up to ($10,000,000) million dollars to be used for development, growth and working capital for the company's current entities, the board of directors also agreed to continue its banking relationship with JP Morgan Chase.
"The company has taken this share restructuring to increase the value of our share price, as we believe that the company at this point is extremely undervalued and does not reflect the true value/market cap. We do not intend to increase the share structure for further growth, instead we will use revenues and traditional bank financing to grow the company going forward." Said Abraham Rosenman President
About First Guardian Financial Corporation:
The company is a Financial Holding Company currently providing Commercial Real Estate Financing & Invests for its own portfolio in small to mid sized businesses. Its primary goal is to provide short term financing within the commercial real estate market and invest and or provide secured short term financing to businesses either in the start up stage or growth stage throughout the United States.
This press release does not constitute an offer of any securities for sale. This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements involve certain risks and uncertainties that could cause actual results to differ, including, without limitation, the company's limited operating history and history of losses, the inability to successfully obtain further funding, the inability to raise capital on terms acceptable to the company, the inability to compete effectively in the marketplace, the inability to complete the proposed acquisition and such other risks that could cause the actual results to differ materially from those contained in the company's projections or forward-looking statements. All forward-looking statements in this press release are based on information available to the company as of the date hereof, and the company undertakes no obligation to update forward-looking statements to reflect events or circumstances occurring after the date of this press release.
Contact:
First Guardian Financial Corporation
Investor Relations, 212-572-4823
Fax: 212-572-6499
ir@guardianfinancialcorp.com
www.guardianfinancialcorp.com
Source: First Guardian Financial Corporation
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