Credit Store Inc. makes announcement.SIOUX FALLS Sioux Falls, city (1990 pop. 100,814), seat of Minnehaha co., SE S.Dak., on the Big Sioux River; settled 1856, inc. as a village 1877, as a city 1883. Settlers abandoned the site in 1862 because of Native American raids, but with the establishment (1865) of Fort , S.D.--(BUSINESS WIRE)--Dec. 6, 1996--Credit Store Inc. (EBB:PLCR) ("CSI CSI Crime Scene Investigator CSI CompuServe, Inc. CSI Commodity Systems, Inc. CSI Commodity Systems Inc. (Boca Raton, FL) CSI Crime Scene Investigation (CBS TV show) CSI Christian Schools International "), a publicly-traded Delaware corporation trading on the Electronic Bulletin Board (trading symbol Trading symbol See: Ticker symbol "PLCR"), Friday announced that it has completed its acquisition of Service One Holdings Inc. ("Service One Holdings"), which is the sole stockholder of Service One International Corp. ("Service One"), from Taxter One LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control ("Taxter"), an entity controlled by Jay L. Botchman. On Sept. 12, 1996, as previously announced, Botchman acquired 20 million shares of common stock of CSI, representing 65.47 percent of the currently outstanding common stock. On Nov. 26, 1996, Botchman contributed these shares of common stock to Taxter. Effective Dec. 4, Taxter exchanged all of its common stock in Service One Holdings for 1.2 million shares of Series A 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. and 800,000 shares of Series B preferred stock of CSI. The Series A preferred stock, as a class, has 80 percent of the voting rights Voting rights The right to vote on matters that are put to a vote of security holders. For example the right to vote for directors. voting rights The type of voting and the amount of control held by the owners of a class of stock. in CSI. The Series B preferred stock has one vote per share. Both series of preferred stock have a liquidation preference of $1.00 per share, will earn cumulative dividends at a rate of 5 percent per annum Per annum Yearly. , and after five years, will be redeemable at the option of CSI. The Series B preferred stock will be convertible after five years into Series A preferred stock. Service One is a national credit card service company specializing in the marketing, underwriting and administration of credit cards issued to sub-prime debtors. Service One markets its credit cards under multiple trade names, one of which is "The Credit Store." Service One targets consumers who have had an interruption in the repayment of their debt and, therefore, may be excluded from financing through traditional sources. The credit card loans typically range in amounts from $1,000 to $2,500. Service One services its loan portfolio at its central facility in Sioux Falls, utilizing its proprietary analytic software and automated loan servicing system. As of Aug. 29, 1996, Service One employed approximately 120 individuals. Service One has been in business for over 15 years. CONTACT: Credit Store Inc., Sioux Falls Martin J. Burke, 605/338-5530 |
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