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Seaway in Discussions with Several Companies for Investment or Acquisition
Business Editors
GOUVERNEUR, N.Y.--(BUSINESS WIRE)---- January 24, 2008
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 focused on
building a regional and super regional portfolio of complementary
assets in the retail and consumer products industry. Seaway Valley's
objective is to acquire or invest in companies in need of growth or
expansion capital and that can also leverage and benefit from
synergies across Seaway Valley's existing portfolio. Benefits could be
achieved through the reduction of expenses by means of shared
resources such as transportation, marketing, advertising, and
administration, as well as immediate cross marketing and selling
opportunities. Seaway Valley portfolio companies should also benefit
by leveraging the Seaway Valley network of company management teams -
each having unique backgrounds, qualifications, and skills.
-- In relatively short order the Company acquired both WiseBuys
Stores, Inc. ("WiseBuys") and Patrick Hackett Hardware Company
("Hackett's"), now together operating as Hackett's. Hackett's
represents the Company's largest investment to date and its
core platform asset around which to build. Management
anticipates that once all five former WiseBuys stores are
converted to Hackett's stores and all nine stores operate
continuously for one complete fiscal year, revenues of the
initial stores should be approximately $35 million per year.
New full format Hackett's stores would add, on average, $2 -
$4 million per year in sales, and Hackett's management is
already reviewing a number of potential expansion sites. It is
likely, however, that expansion will occur only after all five
former WiseBuys stores are fully converted. Management has
also identified approximately $500,000 in immediate potential
expense reductions by combining the two companies into one.
-- Recently Seaway Valley announced that it executed a term sheet
and is in final negotiations to acquire a regional hospitality
and consumer products company with recent revenues and assets
of approximately $5 million and $13 million, respectively. The
company, which has gross assets of approximately $13 million
and revenues of just over $5 million, specializes in consumer
products and is based in Upstate New York region.
-- Seaway Valley is also in preliminary discussions with three
other acquisition / investment candidates. These include: (i)
one regional retailer, (ii) one regional retailer and
wholesale distributor, and (iii) one national consumer
products company. All discussions are considered serious but
are still in the very early stages. Aggregate revenues of all
three are projected to be in the $22-$24 million range for
2008.
Management is focused on creating shareholder wealth with the
potential addition of these assets and will continue to work to
deliver these and others into the portfolio if and when appropriate.
Additionally, with less than $100,000 of the legacy sub-penny
convertible debentures remaining, we expect the significant dilution
to subside shortly. Thank you for your continued patience and
participation, and we look forward to additional activity in the
coming months.
About Seaway Valley Capital Corporation
Seaway Valley Capital Corporation and 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.
KEYWORD: NORTH AMERICA NEW YORK UNITED STATES
INDUSTRY KEYWORD: PROFESSIONAL SERVICES BANKING FINANCE MERGER/ACQUISITION
SOURCE: Seaway Valley Capital Corporation
CONTACT INFORMATION:
Seaway Valley Capital Corporation
contact@seawaycapital.com
www.seawaycapital.com
or
Investor Relations:
CEOcast, Inc.
Andrew Hellman, 212-732-4300
...klingt eigentlich schon sehr sehr vielversprechend, zumindest wenn man "long" ist...!
Business Editors
GOUVERNEUR, N.Y.--(BUSINESS WIRE)---- January 24, 2008
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 focused on
building a regional and super regional portfolio of complementary
assets in the retail and consumer products industry. Seaway Valley's
objective is to acquire or invest in companies in need of growth or
expansion capital and that can also leverage and benefit from
synergies across Seaway Valley's existing portfolio. Benefits could be
achieved through the reduction of expenses by means of shared
resources such as transportation, marketing, advertising, and
administration, as well as immediate cross marketing and selling
opportunities. Seaway Valley portfolio companies should also benefit
by leveraging the Seaway Valley network of company management teams -
each having unique backgrounds, qualifications, and skills.
-- In relatively short order the Company acquired both WiseBuys
Stores, Inc. ("WiseBuys") and Patrick Hackett Hardware Company
("Hackett's"), now together operating as Hackett's. Hackett's
represents the Company's largest investment to date and its
core platform asset around which to build. Management
anticipates that once all five former WiseBuys stores are
converted to Hackett's stores and all nine stores operate
continuously for one complete fiscal year, revenues of the
initial stores should be approximately $35 million per year.
New full format Hackett's stores would add, on average, $2 -
$4 million per year in sales, and Hackett's management is
already reviewing a number of potential expansion sites. It is
likely, however, that expansion will occur only after all five
former WiseBuys stores are fully converted. Management has
also identified approximately $500,000 in immediate potential
expense reductions by combining the two companies into one.
-- Recently Seaway Valley announced that it executed a term sheet
and is in final negotiations to acquire a regional hospitality
and consumer products company with recent revenues and assets
of approximately $5 million and $13 million, respectively. The
company, which has gross assets of approximately $13 million
and revenues of just over $5 million, specializes in consumer
products and is based in Upstate New York region.
-- Seaway Valley is also in preliminary discussions with three
other acquisition / investment candidates. These include: (i)
one regional retailer, (ii) one regional retailer and
wholesale distributor, and (iii) one national consumer
products company. All discussions are considered serious but
are still in the very early stages. Aggregate revenues of all
three are projected to be in the $22-$24 million range for
2008.
Management is focused on creating shareholder wealth with the
potential addition of these assets and will continue to work to
deliver these and others into the portfolio if and when appropriate.
Additionally, with less than $100,000 of the legacy sub-penny
convertible debentures remaining, we expect the significant dilution
to subside shortly. Thank you for your continued patience and
participation, and we look forward to additional activity in the
coming months.
About Seaway Valley Capital Corporation
Seaway Valley Capital Corporation and 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.
KEYWORD: NORTH AMERICA NEW YORK UNITED STATES
INDUSTRY KEYWORD: PROFESSIONAL SERVICES BANKING FINANCE MERGER/ACQUISITION
SOURCE: Seaway Valley Capital Corporation
CONTACT INFORMATION:
Seaway Valley Capital Corporation
contact@seawaycapital.com
www.seawaycapital.com
or
Investor Relations:
CEOcast, Inc.
Andrew Hellman, 212-732-4300
...klingt eigentlich schon sehr sehr vielversprechend, zumindest wenn man "long" ist...!
