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Seaway Valley Capital Corporation to Position Hacketts for Growth and Look to Acquire Additional Assets
11/19/2007
GOUVERNEUR, N.Y., Nov 19, 2007 (BUSINESS WIRE) --
Seaway Valley Capital Corporation (OTC Bulletin Board: SWVC) ("Seaway Valley" or the "Company") chairman and chief executive officer, Thomas W. Scozzafava, issued the following update to its shareholders today:
Dear Shareholders:
Since July of 2007, Seaway Valley management has been focused on delivering, as promised, the acquisitions of WiseBuys Stores, Inc. ("WiseBuys") and then Patrick Hackett Hardware Company ("Hacketts"). Now that this has been accomplished, Hacketts management will begin the task of converting WiseBuys stores to Hacketts stores, which should take a number of months. When done, there will be nine Hacketts stores in total with projected combined annual sales of over $30 million and earnings of around $1.5 million to $2.0 million. These nine stores will serve as a platform to rapidly expand the Hacketts brand further. And although Hacketts is considering additional locations in upstate New York, it will be particularly interested in new locations in Vermont, Pennsylvania, Massachusetts, and Connecticut. Hacketts' Phase I goal is to prudently but rapidly expand its presence to 25 to 30 stores with revenues approaching $100 million.
As part of the WiseBuys transaction, the Company also now controls the Seaway Valley Fund, LLC (the "Fund"), which generated net earnings of approximately $2.0 million and $1.2 million in 2006 and 2007, respectively. The Fund, which was formed in July 2003, buys and sells securities of primarily publicly traded companies. We expect to continue the activities of the Fund and may seek to raise additional capital into the Fund through an offering of limited partnership interests in 2008.
Seaway Valley is also currently seeking additional acquisitions and investments whereby it could increase shareholder value as well as diversify its holdings. These acquisitions may be either minority or majority stakes in companies seeking growth capital and that are well positioned for appreciation. Of particular interest to Seaway Valley are software and technology companies, restaurant and hotel groups, and energy companies. We are in initial discussions with several potential acquisition candidates, and we hope to consummate at least one additional investment in the coming months.
Finally, after management builds the underlying intrinsic value of Seaway Valley through its portfolio of cash flowing assets, the Company will aggressively explore value enhancing strategies such as parent debt reduction, share buybacks, and/or dividends. These strategies shall take additional time and will ultimately depend on the success of the underlying portfolio companies.
Thank you for your continued participation, and we look forward to additional activity in the coming months.
About Patrick Hackett Hardware Company
Hacketts, one of the nation's oldest retailers with roots dating back to 1830, is a full line department store specializing in name brand merchandise and full service hardware. Hacketts, now with nine locations, features brand name clothing for men, women, and children, and a large selection of athletic, casual, and work footwear. Hacketts also carries domestics, home decor, gifts, seasonal merchandise and sporting goods. Hacketts full service hardware department features traditional hardware, tool, plumbing, paint and electrical departments.
About Seaway Valley Capital Corporation
Seaway Valley Capital Corporation makes equity, equity-related, and debt investments in companies that require expansion capital and in companies pursuing acquisition strategies. Seaway also seeks investments in leveraged buyouts and restructurings. Seaway will consider investment opportunities in a number of different industries, including retail, restaurants, media, business services, and manufacturing, and Seaway will also consider select technology investments.
Safe Harbor Statement
This press release contains statements that 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 the Company, and members of their 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: Seaway Valley Capital Corporation
Seaway Valley Capital Corporation contact@seawaycapital.com www.seawaycapital.com or Investor Relations: CEOcast, Inc. Andrew Hellman, 212-732-4300
Copyright Business Wire 2007
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