Consolidated Capital of North America Terminates Acquisition.LOS ANGELES--(BUSINESS WIRE)--July 31, 1998--Consolidated Capital of North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. (OTC OTC See: Over-the-counter. OTC See over-the-counter market (OTC). BB:CDNO) has informed the shareholders of Form Tech Steel that it has withdrawn its offer to purchase the Toledo, Ohio
Paul Bagley, chairman and chief executive officer of Consolidated stated: "A host of issues have arisen that, taken together, make this acquisition untenable at this time. The General Motors strike, combined with a softening demand in several key market sectors, less than favorable financing strategies and material differences in the terms of the acquisition have left us no alternative but to withdraw from this transaction." In commenting further Bagley added: "We are making substantive headway in our drive to return our most recent acquisition to profitability. We have added a seasoned steel industry general manager with a demonstrated track record of success at Capitol Metals and are making strong advances at our Angeles Metal Trim subsidiary. These developments bring us demonstrably closer to our goal of turning around these operations and building significant shareholder value." Consolidated Capital of North America, through its two wholly owned subsidiaries 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. , Capitol Metals and Angeles Metal Systems is a value added reseller See VAR. (company) value added reseller - (VAR, or "value added retailer") A company which sells something (e.g. computers) made by another company (an OEM) with extra components added (e.g. specialist software). of flat rolled carbon steel products serving the housing, defense, aerospace, automotive and commercial construction industries. It presently operates out of a 300,000 square foot facility in Torrance, Calif. and employs over 130 people. 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 new "safe harbor" for certain forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those stated in the forward-looking statements. Factors that could cause actual results to differ materially include, among others: general economic conditions, changes in laws and government regulations, fluctuations in demand for the company's products, the company's ability to consummate strategic acquisitions and the company's ability to successfully finance any such future acquisitions, as well as its current ongoing operations.
CONTACT: International Investor Relations Group
Andrew F. Banks, 407/865-9433
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