GARDEN CITY, N.Y., Aug 8, 2001 (BUSINESS WIRE) -- CDKnet.com, Inc. ("CDK" or the "Company")(OTC Bulletin Board: CDKX) announced today that it has completed the formation of a fund and money management subsidiary.
The subsidiary, which will be majority owned by CDK and partially owned by the fund managers, will be known as Azure Capital Holdings, LLC. "We intend to design and implement a variety of strategies for selected groups of institutional and high net worth investors and to provide them with an opportunity to combine strategies in a fund of funds approach if they chose. The formation of this subsidiary is the first major step in CDKnet's restructuring and is intended to serve as the centerpiece of our financial services operations as we move from a technology company to a financial services company," said Steven A. Horowitz, CEO of CDKnet.
"The recent sale of substantially all of the assets and business of our Valueflash.com, Inc. ("Vflash") subsidiary to Elbit Limited (Nasdaq: ELBT) announced last month has left us with cash reserves of approximately $3.0 million in cash and escrow receivables, under $200,000 in liabilities and a royalty producing licensing base from our CDK technology platforms. These assets together with our very low production cost structure and low overhead, provide us with the means to be profitable in our remaining technology business while developing the new financial services elements of our business. Now the Company will be in a position to enter into these more profitable lines of business which do not require the expenses of continuous technology development and maintenance in addition to the ordinary costs of doing business," said Horowitz. The Company intends to add new management who will seek out other opportunities in the financial services sector and is now actively engaged in discussions for the establishment of businesses in the insurance and the third party pension and health fund administration area. In addition, the Company is negotiating with third parties for the development of a private equity financing fund whereby the Company will be able to generate significant fee based revenue and realize on the appreciation of the businesses it finances. "We believe that we now are in a position to build shareholder value by acquiring and developing interests in profitable businesses which can be self- sustaining."
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: Forward-looking statements in this release with respect to the Company's business, financial condition and results of operations are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements, including, but not limited to, certain delays beyond the company's control with respect to market acceptance of new technologies, products, or services, delays in testing and evaluation of products, the effect of the Company's accounting policies as well as certain other risk factors which are detailed from time to time in the in the Company's filings with the Securities and Exchange Commission.
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