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Silverado Financial Announces Letter of Intent to Acquire Realty Capital Corporation
CAMPBELL, Calif.--(BUSINESS WIRE)--April 9, 2003--
Acquisition Would Represent Silverado's Entry Into the
High-Growth Consumer Finance Market and is the First
in a Series of Targeted Acquisitions
Silverado Financial, Inc., (OTCBB:NUKE), a multifaceted financial technology company, today announced a binding letter of intent to acquire Realty Capital Corporation, a privately held company majority owned by Silverado's president, John Hartman. Realty Capital is a fully licensed mortgage broker with both FHA and VA conforming and non-conforming loan capability. Its strategic direct "A/A+" lenders are 11 in number with outlets to B, C, and D paper lenders, as well as hard money where the closing must be expedited. This acquisition represents Silverado's entry into the high-growth consumer finance market and integrates its proprietary, Internet based, software product targeted at interlinking independent real estate and mortgage professionals with Silverado's mortgage bank and consumer lending group.
Realty Capital is projecting $750,000 in 2003 revenues as a specialty consumer finance company that invests, originates and services mortgage loans, which are primarily secured by first and second mortgages on residential and commercial properties. Realty Capital also invests in and originates and sells notes payable and subordinated debentures to investors on a selective basis.
The purchase price will be the net asset value of Realty Capital based upon an independent third party valuation. No consideration will be paid for any intellectual property or goodwill. The acquisition has been approved by the board of directors of each company, subject to the valuation, financial information and shareholder approval at the Company's next annual shareholder meeting, the date of which will be subsequently announced. The company intends to file a proxy statement under Form 14A, which together with its annual report and the agreement to purchase Realty Capital, its financial information and valuation, will be presented to the shareholders for their approval.
"The Realty Capital acquisition is our first in the series of targeted acquisitions, which we expect to complete this year," stated John Hartman, President and CEO of Silverado Financial Inc. "This acquisition is the first using a specific acquisition model, which has been proven to be successful in real estate brokering and the registered investment advisor markets to outstanding success. We are in active negotiations with several acquisition targets and from closure of any two of these target acquisitions we are projecting approximately $3.5 Million in revenues and profitability for the year."
Silverado Financial, Inc. is a multifaceted financial technology company which plans to be a services company focused on mortgage brokerage, mortgage banking, property management, commercial property investment and software technology related to the real estate and lending industry.
Forward Looking Statements. This Release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All forward-looking statements are inherently uncertain as they are based on current expectations and assumptions concerning future events or future performance of the Company. Readers are cautioned not to place undue reliance on these forward-looking statements, which are only predictions and speak only as of the date hereof. Forward-looking statements usually contain the words "estimate," "anticipate," "believe," "plan," "expect," or similar expressions, and are subject to numerous known and unknown risks and uncertainties. In evaluating such statements, prospective investors should review carefully various risks and uncertainties identified in this Release, including the above matters and in the Company's SEC filings. These risks and uncertainties could cause the Company's actual results to differ materially from those indicated in the forward-looking statements.
Cervelle Group Public Relations, Orlando, Fla.
David Donlin, 866/295-7878
SOURCE: Silverado Financial Inc.