Credit Depot Acquires Residential Mortgage Broker/Lender; Expands Credit Depot's Retail Base.GAINESVILLE, Ga.--(BUSINESS WIRE)--April 23, 1997--Credit Depot Corporation (Nasdaq: LEND) today announced that it has completed the acquisition of privately-held Cash Back Mortgage Company ("Cash Back"), a subprime residential mortgage broker and lender located in Cleveland, Ohio "Cleveland" redirects here. For the Cleveland metropolitan area, see . For other uses, see Cleveland (disambiguation). Cleveland is a city in the U.S. state of Ohio and the county seat of Cuyahoga County, the most populous county in the state. and licensed to operate in several states. Gerald F. Sullivan Sr., President and Chief Executive Officer, stated: "The acquisition of Cash Back, represents a unique opportunity to execute our strategy to acquire companies that are both synergistic synergistic /syn·er·gis·tic/ (sin?er-jis´tik) 1. acting together. 2. enhancing the effect of another force or agent. syn·er·gis·tic adj. 1. with our core business and will help expand our business base. The operations of Credit Depot and Cash Back are highly complementary. With the addition of Cash Back's technology-based retail marketing operations, we will be able to leverage the strengths of our combined companies." Alan Schiff and Alan Solomon, principals of Cash Back Mortgage Company, will continue to manage the company 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 Credit Depot. Messrs. Schiff and Solomon, stated: "We are pleased to join the Credit Depot team. This acquisition, which combines Credit Depot's underwriting strengths with Cash Back's sophisticated retail telemarketing telemarketing, the practice of selling goods or services to customers by means of the telephone or of surveying consumer preferences in telephone conversations. capabilities, will enhance the already superior level of service that our combined companies provide to the mortgage broker community." Credit Depot Corporation is a multi-state financial services 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. Company that provides residential real estate financing to individuals unable to secure loans through conventional sources. The Company operates in 14 states. These loans are collateralized by mortgages, primarily on owner-occupied residential properties. "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 under 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: The statements in this press release regarding matters that are not statements of historical fact, including statements relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc plans, strategies, expectations and future economic results, 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. within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. Actual results may differ materially from the statements made, as a result of various factors, including risks associated with the Company's mortgage loan investments, such as the risks of defaults on mortgage loans, economic and other factors which impact real estate values and prevailing interest rates, the Company's ability to originate a sufficient volume of mortgage loans, the Company's ability to resell the mortgage loans in the secondary market, and other factors which are listed from time to time in the Company's Securities and Exchange Commission filings. CONTACT: Gerald F. Sullivan/Charles Farrahar Credit Depot Corporation 770/531-9927 or Kehoe, White, Savage & Company, Inc. John P. Kehoe/Van Negris 212/888-1616 |
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