TORONTO, April 24, 2008 /PRNewswire-FirstCall via COMTEX/ -- Monarc Corporation (Mona.Pk) announces that it has been acquired by a mortgage financial and real estate company Brookcor Holdings Inc.
Brookcor Holdings Inc. ("Brookcor") is a Toronto based holding company providing service to its subsidiary companies in the areas of Mortgage Finance, Mortgage Investment, Mortgage Brokerage, Real Estate Investment and Real Estate Retail Services.
Incoming CEO Mr. Mike Mc Calla who started Brookcor in 1995 stated, "This deal came to us in the late stages of the 11th hour". Brookcor was in the process of being acquired by another small cap company, being named as officers of that company and was in the process of working out the logistics when we learned that Mona may be an option for us to consider.
One of the main reasons why Mona was appealing to us here at Brookcor, is MONA'S shelved Cash Next project. Mr. Mc Calla said, "It is kind of strange to be involved with Mona on this level, as I have followed Mona as a shareholder for the past couple of years, and several years ago Brookcor was one of the many lenders listed in the Cash Next system. Simply put, Cash Next is a brand which runs on the secure "Trust Vault" platform offering interactive data services online that allows both borrowers and participating lenders to communicate directly with each other, and allows these multiple lenders to offer and review financing proposals for the end user. Cash Next earned its income from licensing this technology to participating lenders for a onetime fee, plus ongoing monthly maintenance and usage fee. In addition, Cash Next also earned revenues from the end users in a form of a fixed application fee once the application was approved.
Cash Next may have been ahead of its time however with the current mortgage crisis, the Cash Next products such as participating mortgages and other lending products currently being considered in the industry are just the beginning. Mr. Mike Mc Calla added: "We see this opportunity as being at the right time at the right place."
As consideration, Mona will receive various guarantees of performance from Brookcor valued at about $500,000. Outgoing CEO Steen Elgaard stated, "Our shareholders have made it clear that their wish is to see the company grow, without us having to issue stock in doing so. This seemed as an impossible task however it goes to show that it can be done". Mike McCalla added, "We want to get right to business, we will not be doing any name change or symbol changes or anything that will slow us down from getting Brookcor and Cash Next going.
In other company news, Mr. Elgaard will remain as President of the IFGX, CanDen and Syscon divisions. Mr. Elgaard added, "We have received an overwhelming amount of inquiries regarding the dividend status, Cash Now and my status with the company. Although we have answered each of these inquiries in painstaking detail in both Town Hall posts, emails and news releases we will again use this opportunity to advise all concerned that the dividend matter has been resolved, and issued the week of April 15 2008. Cash Now and Cash Next are two quite different and unique products, and have nothing to do with each other. The basis of the dividend paid out last week is partly of the Cash Now sale." Upton Beall Sinclair, Jr wrote, "It is difficult to get a man to understand something when his salary depends upon his not understanding it", and we could not agree more with this assessment and matters relating to MONA.
The company invites readers to visit its new corporate website www.monacorporation.com and to use this opportunity to announce that the company intends to issue a forward guidance and a President's vision message shortly. Mr. Mike Mc Calla added, "What we would like to do is make this an interactive event rather than the traditional guidance message, so that these nonsense rumors and gossips can be thwarted once and for all as we would like nothing more but to see the company share price return to its true values." We invite inquiries for the president's message to be emailed to us at corporatematters@monacorporation.com
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