FRTD News out
ERIE, PA--(Marketwired - Mar 4, 2014) - Fortitude Group, Inc. (OTC: FRTD) is pleased to announce that on February 28, 2014, the Company entered into a master funding agreement whereby, under the terms of the agreement, Fortitude will become the majority shareholder of a fully reporting Bulletin Board public company for the specific purpose of completing the funding of PRIMARQ while not diluting the current share structure of Fortitude.
Thomas J. Parilla, CEO of Fortitude, stated, "Under the preliminary terms of our purchase agreement, we have committed to invest $4 million USD for a 45% stake in PRIMARQ. If we were to use the equity of Fortitude to perfect this transaction, even at today's closing price, the dilution to our shareholders would be massive. To combat this, our partners at G3 designed this unique funding strategy which upon completion will allow us to acquire control of this fully reporting trading company. Instead of diluting Fortitude, we do the opposite strategy and issue our shareholders a dividend in this fully reporting company which upon closing, will give us the ability to complete the PRIMARQ investment within 30-days."
The agreement calls for closing this acquisition on or before March 7, 2014, at which time the Company will announce to the public, the name and symbol of the new publicly traded portfolio company. The release will further outline the dividend ratio to be issued to Fortitude shareholders as well as the effective date for this dividend.
