Axia Holdings Enhanced by Business Acquisition.Business Editors SALT LAKE CITY--(BUSINESS WIRE)--May 9, 2001 Axia Group Inc. (OTCBB OTCBB See OTC Bulletin Board (OTCBB). : AXIA) Wednesday announced that one of its former subsidiaries, CyberGate Inc., has satisfied the terms of a Stock Purchase Agreement to acquire a 100 percent interest in Home Mortgage and Loan Inc. ("Home"). Home is a Utah-based mortgage company that originates, processes and funds mortgages on single and multiple family residences. Home has been in the mortgage business for over two years and will now operate as a wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. of CyberGate. Axia currently owns 2 million shares or a 9.9 percent of CyberGate with a cost basis of $2,000. Hudson Consulting Group Inc., a majority-owned subsidiary majority-owned subsidiary A firm in which more than 50% of outstanding voting stock is owned by the parent company. of Axia, has been retained as a consultant to assist CyberGate in becoming a publicly traded company publicly traded company A company whose shares of common stock are held by the public and are available for purchase by investors. The shares of publicly traded firms are bought and sold on the organized exchanges or in the over-the-counter market. on the NASD NASD See: National Association of Securities Dealers NASD See National Association of Securities Dealers (NASD). OTC OTC See: Over-the-counter. OTC See over-the-counter market (OTC). BB. Hudson will be paid $75,000 under the terms of the consulting agreement. Axia plans to distribute approximately 500,000 shares of its holdings in CyberGate to Axia's shareholders as a stock dividend, through filing a registration statement with the Securities and Exchange Commission. Axia will retain the remaining 1.5 million shares of CyberGate as investment securities. The distribution is expected to occur within the next 12 months and is contingent upon Adj. 1. contingent upon - determined by conditions or circumstances that follow; "arms sales contingent on the approval of congress" contingent on, dependant on, dependant upon, dependent on, dependent upon, depending on, contingent the effective registration of the dividend. Axia's Chief Executive Officer Richard Surber commented that, "If CyberGate is able to execute its business plan, there is a considerable upside for Axia and its shareholders, especially given the current market price of Axia's stock. Axia shareholders will have the opportunity to directly participate as shareholders of CyberGate without ever directly investing in CyberGate. "The distribution of stock dividends to the shareholders of Axia in a variety of businesses is an exciting prospect for Axia shareholders. The Axia model is designed to bring value for our shareholders, by repeating this stock dividend distribution process over and over again." Surber went on to say that, "Until the value of this concept is understood by the investment community, I believe that many of the anticipated stock dividends that Axia may distribute to its shareholders might exceed most shareholders' initial investment in Axia. The upside potential Upside potential The amount by which analysts or investors expect the price of a security may increase. upside potential The potential price or gain that may be expected in a security or in a security average, generally stated as the dollar is significant given Axia's current bid price of $.37. "The stock dividend distribution concept should be a strong motivation for investing in Axia." Axia is in the process of closing two other reverse acquisitions that involve its holdings in CyberBoy Inc. and Cyberenergy Inc. Axia anticipates that it will complete over 20 stock dividend distributions over the next 18 months, positioning itself as an inexpensive alternative to "going public" for promising start-up and micro- to mid-sized private companies. Axia is aggressively executing upon this plan that will effectively transform its business into that of a cutting-edge incubator of public companies. Axia believes that its shareholders have a unique opportunity to reap substantial benefits as a result of this innovative approach "to building value." CyberGate Inc., CyberBoy Inc. and Cyberenergy Inc. are all fully reporting companies under the Securities Exchange Act of 1934. For more information on these companies, please see their public disclosures at www.sec.gov. For more information on Axia's operations, please visit www.axiagroupinc.com. For more information on Axia's subsidiary Hudson, please visit www.hudsonconsult.com. Axia strongly encourages the public to read the above information in conjunction with its Form 10KSB KSB Kogod School of Business (American University) KSB Kelley School of Business (Indiana University) KSB Kantonsschule Am Brühl St. for Dec. 31, 2000, and all other appropriate public disclosures. The above disclosure documents can be viewed at www.sec.gov. A number of statements contained in this press release are forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. which are made pursuant to the 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. provisions of 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. These forward-looking statements involve a number of risks and uncertainties including but not limited to, competitive market conditions, successful integration of acquisitions and the ability to secure additional sources of financing. The actual results that Axia may achieve could differ materially from any forward-looking statements due to such risks and uncertainties. |
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion