RELM Holdings Affirms the Pending Acquisition of Access Versalign in a Share Exchange and Sub Signs LOI to Purchase More Real Es
11 Junio 2009 - 10:08AM
Marketwired
RELM Holdings Inc. (PINKSHEETS: RELM) affirms the pending
acquisition of Access Versalign Inc. (AVI) in a share exchange.
Subject to final bank approval, this acquisition will give RELM
access to cash flows and expanded business opportunities in the
Information Technology industry. In 2008, on a pro-forma basis, AVI
has over $9 million in assets (from a related company) as a
consolidated company and generated $2.5 million in gross revenue
with $319,680 in EBITDA.
AVI was organized in 2008 and in 2009 acquired Versalign Inc.
(Wilmington, DE), which was founded in 1985 and currently provides
targeted Information Technology solutions for corporate,
professional and governmental clients in the Mid-Atlantic region.
RELM is using the proprietary BCLOC model of a related company to
structure the acquisition of Versalign which was based on a
multiple of Versalign's 2008 EBITDA.
This acquisition will also provide RELM with new top management,
additional gross revenue, plus it increases the employee base to
over 25 employees. These changes plus the $200,000 in new
incremental business secured by Versalign are expected to be
reflected in the second quarter report of 2009.
Marc Greenberg, RELM's EVP/COO and CEO of Versalign, says, "The
RELM and Access Versalign acquisition of Versalign will bring more
value to the RELM shareholders and creates greater opportunities
for RELM through the implementation of technology. I look forward
to further develop, implement and support RELM's innovative
financial services products as they are reintroduced to the
market."
This acquisition by RELM marks the second of several
acquisitions that are expected to be completed in 2009. Other
acquisitions are planned.
Relm Real Estate Holdings, a RELM subsidiary, has signed a
Letter of Intent to purchase an additional apartment complex for
$10,000,000. This is in addition to the previously announced
$7,000,000 LOI that was recently executed. This brings the total
value of real estate under agreement to $17,000,000. Once
successful due diligence is conducted on both acquisitions and the
expected value is supported, they will produce a combined annual
EBITDA of $1,956,955. The subsidiary expects to use stock held in
portfolio to fund up to 30% of the purchase amount and has applied
to several third party lenders to borrow up to 70% as a bridge to
fund the acquisitions until permanent financing is secured. Mr.
Greenberg added, "We are excited to overlay the latest technology
to enhance the experience for the tenants and to improve the
efficiency of managing the properties. We envision deploying WiFi
network access, remote building and security monitoring, and
electronic payment processing."
About RELM
RELM was incorporated to acquire operating businesses and is now
a holding company with a primary focus on financial and information
technology services along with real estate. The Company bases its
business model on the acquisition of synergistic businesses with
the capability to support and compliment its financial and
technology products. RELM intends to lead a vertically integrated
family of companies that will provide full solutions for its
affiliates and clients, such as underwriting, servicing, raising
capital, and commercialization, while securitizing and guaranteeing
its products in the marketplace. Since 1994 the Company has
conceived, designed, and developed innovative, new products that
"absorb asset risk." For more information about the Company, please
visit www.relmholdingsinc.com.
SAFE HARBOR
The Private Securities Litigation Reform Act of 1995 provides a
safe harbor for forward-looking information made on the company's
behalf. All statements, other than statements of historical facts
which address the company's expectations of sources of capital or
which express the company's expectation for the future with respect
to financial performance or operating strategies, can be identified
as forward-looking statements. Such statements made by the company
are based on knowledge of the environment in which it operates, but
because of the factors previously listed, as well as other factors
beyond the control of the company, which include the ability of the
company to implement its newly expanded business model or acquiring
businesses and real estate, actual results may differ materially
from the expectations expressed in the forward-looking
statements.
Contact: RELM Holdings Inc. info@relmholdingsinc.com
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