Advantage Capital Development Corp. Portfolio Company Signs Letter of Intent to Merge With California-Based Public Entity; Company Increases Stake in Global IT Holdings.MIAMI Miami, cities, United States Miami (mīăm`ē, –ə). 1 City (1990 pop. 358,548), seat of Dade co., SE Fla., on Biscayne Bay at the mouth of the Miami River; inc. 1896. -- Advantage Capital Development Corp. (Pink Sheets:AVCP AVCP Association of Village Council Presidents ) announced today that one of its portfolio companies, Global IT Holdings Inc., has signed a letter of intent to merge with High Road International, Inc. (Pink Sheets:HRDI HRDI High Resolution Doppler Imager HRDI Healthcare Research and Development Institute (Pensacola, Florida) HRDI Human Resources Development Institute, Inc (Chicago, IL behavioral health organization) ). Upon completion of the transaction, Global IT Holding Inc. will own 85 percent of all of the fully diluted shares of High Road, a Nevada corporation based in California. "We believe that the merger of Global IT Holdings and High Road clearly validates our business model," said Jeffrey Sternberg, president and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Advantage Capital Development Corp. "Our goal as a business development company is to identify specific small and emerging companies that need capital to grow to realize their full potential while creating value for our shareholders. As a stand alone public entity, Global IT Holdings will be able to avail itself of various resources to aggressively pursue its tactical approach to become a significant player in the burgeoning IT staffing industry." Global IT Holdings Inc. is a New York-based holding company created to acquire targeted IT staffing firms. The Company's current holdings include Platinum IT Consulting and its associated company, Parker Clark Data Processing. These two companies, which have served the New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of and New Jersey Markets for 25 years, have combined annual revenues in excess of $5 million. According to the American Staff Association, U.S. annual sales for temporary help totaled $63.3 billion in 2004, nearly on par with the industry's sales peak in 2000 and 12.5% more than 2003. For the past three decades the industry has grown at a rate of 10 percent a year. Ninety percent of U.S. companies use temporary staffing services. Sternberg also said his company has increased its ownership in Global IT Holdings from 15 to 22 1/2 percent. High Road International has been involved in technology and service related entities. Upon completion of the merger, the new public entity will be named Global IT Holdings and its focus will be a pure-play IT staffing company. Advantage Capital recently announced it had converted a $1 million convertible note with Cornell Capital Partners into shares of the Company's preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. . The Company also reported that another institutional fund, Montgomery Equity Partners LP, has purchased $475,000 of the same preferred stock. The resultant transactions virtually eliminated all of the company's debt, while the Company's tangible net worth Tangible Net Worth Total assets less intangible assets and total liabilities. Notes: In terms of a consumer, tangible net worth is the sum of all your tangible assets (cash, home, cars, etc). now exceeds $2 million. About Advantage Capital Development Corp. Advantage Capital is a business development company, which operates specifically to meet the needs of small and emerging companies that need capital to grow. Business development companies, as defined under the Investment Act of 1940, are specifically designed to encourage the growth of small businesses. The rules provide certain financing advantages for companies that invest in small and emerging businesses. As a result, this will include investing in both public and private entities using certain types of debt and equity financing Equity Financing The act of raising money for company activities by selling common or preferred stock to individual or institutional investors. In return for the money paid, shareholders receive ownership interests in the corporation. not normally available to other public companies. Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. Statement: The Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995 provides a "safe harbor" for forward-looking statements. Certain of the statements contained herein, which are not historical facts, are forward- looking statements with respect to events, the occurrence of which involve risks and uncertainties. These forward-looking statements may be impacted, either positively or negatively, by various factors. Information concerning potential factors that could affect the Company is detailed from time to time in the Company's reports filed with the Securities and Exchange Commission. |
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion