CPS reports merger with CPS Holdings Inc.IRVINE Irvine, town, Scotland Irvine (ûr`vĭn), town (1991 pop. 32,507), North Ayrshire, SW Scotland, on the Irvine River estuary. Industries include iron and brass foundries. Other products are chemicals, electric goods, and clothing. , Calif.--(BUSINESS WIRE)--Aug. 31, 1995--Consumer Portfolio Services Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :CPSS CPSS Committee on Payment and Settlement Systems CPSS Commission on Public Secondary Schools CPSS Cincinnati Prehospital Stroke Scale (STR - Smile, Talk, Raise both arms) CPSS Certified Professional Soil Scientist ) Thursday reported that it has entered into a merger agreement with its largest shareholder, CPS (1) (Characters Per Second) The measurement of the speed of a serial printer or the speed of a data transfer between hardware devices or over a communications channel. CPS is equivalent to bytes per second. Holdings Inc. In the merger, which is subject to shareholder approval, Consumer Portfolio Services will be the surviving corporation, and the separate corporate existence of CPS Holdings will terminate. CPS Holdings currently owns 2,513,000, or 46.2% of the company's outstanding common shares and has an option to purchase 900,000 additional shares at $5.00 per share. Owning these securities is its only business. CPS Holdings has advised the company that it intends to exercise the option prior to the merger. At the time of the merger, CPS Holdings will have no liabilities or assets other than its shares of the company's stock. In the merger, CPS Holdings' shares in the company will be canceled, and the stockholders of CPS Holdings will receive the same number of shares of the company's common stock as CPS Holdings owns at the time of the merger. Thus, the merger will not affect the business operations Business operations are those activities involved in the running of a business for the purpose of producing value for the stakeholders. Compare business processes. The outcome of business operations is the harvesting of value from assets or change the number of shares outstanding. The effect of the merger will be that CPS Holdings' stockholders will hold their investment in the company directly rather than indirectly through CPS Holdings. The exercise of the option prior to the merger will increase the company's cash and net worth by $4.5 million and will increase the number of outstanding shares by 900,000. The company also announced that it proposes to change its state of incorporation from California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). to Delaware Delaware, state, United States Delaware (dĕl`əwâr, –wər), one of the Middle Atlantic states of the United States, the country's second smallest state (after Rhode Island). by merging into a wholly owned Delaware subsidiary which it recently formed solely for this purpose. The reincorporation merger will not affect the business operations or financial condition of the company. In the merger, each share of the company's common stock will be exchanged for one share of the subsidiary's common stock. The company has scheduled a shareholders' meeting shareholders' meeting n. a meeting, usually annual, of all shareholders of a corporation (although in large corporations only a small percentage attend) to elect the Board of Directors and hear reports on the company's business situation. for Sept. 26, 1995, to obtain approval for the merger with CPS Holdings and for the reincorporation merger. Charles E. Bradley Jr., president and chief executive officer stated, "The option exercise contributes $4.5 million in cash which will be used to continue the company's loan origination The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. expansion and provide resources for other potential opportunities." Consumer Portfolio Services purchases, sells and services loans originated by automobile dealers for new and late model used cars. The company services loans in 49 states and has purchased contracts in 30 states. For more information on Consumer Portfolio Services via facsimile at no cost, call 800/PRO-INFO and dial client code 090. CONTACT: Consumer Portfolio Services Inc., Irvine Charles E. Bradley Jr., 714/753-6800 or Financial Relations Board General Information Jody Martin, 310/442-0599 Analyst Contact Moira Conlon, 310/442-0599 Media Contact Judith Sylk-Siegel, 212/661-8030 |
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