~RAPT News...
Raptor Investments Management Expands on Strategic Vision and Acquisition Progress
Raptor Investments, Inc. (OTC:RAPT) today announced its projected timetable for the completion of its first acquisition pursuant to the company's announcement on Monday, May 23rd that it was terminating its LOI to acquire Micro-Connections, Inc. and simultaneously shifting its strategy into the eBay drop store, retail thrift, business liquidations, and self-auction businesses. Jamie DeSane, acting CEO of Raptor, commented, "This has been in the works for quite a while, actually. Due Diligence we conducted on Micro-Connections revealed IP that might not be worth protecting, little potential for pricing power and a host of dependency issues."
Raptor Investments announced it has joined Las Vegas based Net2Auction Inc. (Pink Sheets:NAUC) and Dallas based Orbit Drop, Inc. (Pink Sheets:OBDP) in the eBay (NASDAQ:EBAY) drop store business "but with some significant differences over our eBay reliant brethren," suggests DeSane. "We liked the prospects for the business but were worried about immediate viability as a stand-alone. Every financial model we put together suggested great potential in terms of operational scale and cash flows long-term, but way too many short-term hurdles. We view drop stores as a business that depends on attaining critical mass to be successful, requiring huge capital expenditures with uncertain profitability timetables." He added, "We felt that the franchise option wasn't an option for us because it traded larger long-term cash flows for smaller more immediate cash flows."
Instead, The Company has made a commitment to acquire existing 'bricks n clicks' auction companies with significant revenue history, both independently and through eBay, as well as existing local community consumer-focused 'thrift' store locations that will also serve as eBay drop locations and consignment intake centers. "Virtually every community has a retail thrift store that, depending on the size of the location, generates between $20,000 and $80,000 per month in retail sales," said DeSane. "The size of these stores as well as the revenue stream from retail 'thrift' sales will be the foundation of the Company's chain of eBay drop stores and other businesses." The Company is also targeting the business liquidation market from these locations, which is estimated to exceed $250 Billion a year in the United States.
DeSane remarked, "Over the past three to four weeks our acquisition teams and our acquisition candidates have been working feverishly to complete accretive, "win-win" type transactions for all existing stakeholders. We like the identified candidates because each possesses wholly unique business attributes in addition to tried and true customer, revenue and operating cash flows that fit the overall strategic and operating models exceedingly well. They like the strategic vision in the marriage of these businesses as a catalyst for significant future growth." He added, "At this stage, it looks like we should be able to announce the LOI on at least one acquisition in the next week or so."
Safe Harbor
This press release contains statements which may constitute "forward-looking statements" within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995. Those statements include statements regarding the intent, belief or current expectations of Raptor Investments, Inc., and members of its management as well as the assumptions on which such statements are based. Prospective 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 contemplated by such forward-looking statements. Important factors currently known to management that could cause actual results to differ materially from those in forward-statements include fluctuation of operating results, the ability to compete successfully and the ability to complete before-mentioned transactions. The company undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results.
SOURCE: Raptor Investments, Inc.
For Raptor Investments, Inc., Plantation
Brass Bulls Corp.
Investor Relations
Marc Lovito, 866-342-2700
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