NMKT news
DALLAS--(BUSINESS WIRE)--NewMarket Technology, Inc. (OTCBB:NMKT - News) and Paragon Financial Corporation (OTC:PGNF - News) announced today that they have entered into a letter of intent agreement to combine NewMarket's Latin America Operation into Paragon Financial Corporation. NewMarket currently has over $20 million in profitable annual revenue from its Latin America Operations. The transaction would result in NewMarket owning a majority stake in Paragon Financial. Paragon would reorganize its remaining financial services operations to support NewMarket's current Latin America operations.
2nd Listed Subsidiary and NewMarket's Plan to Dividend Subsidiary Stock
NewMarket's Latin America operation would be the Company's second consolidated subsidiary to be independently listed supporting NewMarket's plan to issue publicly listed subsidiary stock to shareholders in dividend declarations. NewMarket recently listed its Chinese operating subsidiary with a revenue forecast of $40 Million for FY2007 in a transaction with Intercell International Corporation (OTCBB:IICP - News). Intercell is now an independently listed, consolidated subsidiary of NewMarket and is in the process of changing its name to NewMarket China. NewMarket Technology shareholders can expect shares in IICP/NewMarket China after certain internal operating goals are met by IICP/NewMarket China.
Terms of the Letter of Intent Agreement
In the proposed transaction NewMarket would exchange one hundred percent of the stock of its Brazilian operating subsidiary ($11 million in profitable annual revenue) for convertible preferred stock issued by Paragon Financial. The convertible preferred stock issued to NewMarket would include supermajority voting rights equal to 90% of the total Paragon common voting rights. NewMarket would agree not to convert any of the preferred stock into common stock for a period of at least twelve months. Paragon would be renamed NewMarket Latin America. NewMarket will subsequently reorganize all its Latin America operations into NewMarket Latin America.
Paul Danner, Acting Chairman of Paragon Financial Corporation Statement:
"NewMarket Technology has a proven plan to independently list regional operating subsidiaries to support aggressive emerging technology growth in a manner that maximizes shareholder return on investment. This is an excellent opportunity for Paragon shareholders to benefit from a high growth strategy represented by NewMarket Technology. While NewMarket receives the majority of ownership in exchange for bringing the majority of the operation, Paragon shareholders have a year to benefit from their Paragon stock ownership before NewMarket can convert preferred stock into common stock."
Philip Verges, CEO and Chairman of NewMarket Technology, Inc. Statement:
"We are pleased to have Paragon consider our Latin American operation as a merger partner. The current Paragon management team has a laudable history as custodians of shareholder's best interests. Paul Danner and his team have challenged NewMarket's strategy and commitment for their shareholders before entering into this agreement. We are privileged to have this opportunity with Paragon and we look forward to building NewMarket Latin America beyond our current operations in Chile, Brazil and Venezuela."
NewMarket Town Hall Meeting
Paragon Financial shareholders and interested investors are encouraged to attend the NewMarket Technology Annual Town Hall December 7th in New Orleans to learn more about the Company's business plan, review 2006 performance and plans to continue rapid growth into next year with a forecasted $120 million in profitable annual revenue for 2007. For details on times, venue and discounted travel arrangements available to attendees please visit www.newmarkettechnology.com. If you have any further questions, or would like to RSVP to the NewMarket Technology Annual Town Hall please contact Whitney Marks at 214-722-3052 or wmarks@newmarkettechnology.com.
About NewMarket Technology Inc. (www.newmarkettechnology.com)
NewMarket helps clients maintain the delicate balance between maintaining legacy systems and gaining a competitive edge from the latest technology innovations. NewMarket provides certified integration and maintenance services to support the prevailing industry standard solutions to include Microsoft (Nasdaq:MSFT - News), Cisco Systems (Nasdaq:CSCO - News), Hyperion Solutions (Nasdaq:HYSL - News), SAP (NYSE:SAP - News), Siebel (Nasdaq:ORCL - News) and Sun Microsystems (Nasdaq:SUNW - News). Concurrently, NewMarket continuously seeks to acquire undiscovered emerging technology assets to incorporate into an overall product portfolio carefully packaged to complement the prevailing industry standard solutions. NewMarket delivers its portfolio of products and services through its global network of Solution Integration subsidiaries in North America, Latin America, China and Singapore. NewMarket maximizes shareholder return on investment by independent listing of consolidated regional and emerging technology subsidiaries in order to issue subsidiary stock in shareholder dividends.
About Paragon Financial Corporation (www.pgnf.com)
Paragon Financial Corporation has been a financial services business focused on the acquisition of companies that originate mortgages loans or provide other financial services. Subsequent to the recent sale of its Paragon Homefunding subsidiary, acting management is currently exploring a range of alternative business strategies to maximize shareholder value.
"SAFE HARBOR STATEMENT" UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
This press release contains forward-looking statements that involve risks and uncertainties. The statements in this release are forward-looking statements that are made pursuant to safe harbor provision of the Private Securities Litigation Reform Act of 1995. Actual results, events and performance could vary materially from those contemplated by these forward-looking statements. These statements involve known and unknown risks and uncertainties, which may cause NewMarket's actual results in future periods to differ materially from results expressed or implied by forward-looking statements. These risks and uncertainties include, among other things, product demand and market competition. You should independently investigate and fully understand all risks before making investment decisions.
Contact:
NewMarket Technology, Inc.
Rick Lutz, Investor Relations, 404-261-1196
ir@newmarkettechnology.com
www.newmarkettechnology.com
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