PARAGON MORTGAGE CORP. ACQUIRES 82 PERCENT OF EASTERN EMERALD INC.
TUCKER, Ga., Oct. 10 /PRNewswire/ -- Paragon Mortgage Corp. (Nasdaq: PGMT) today announced that Paragon had acquired 82 percent of the outstanding common stock of Eastern Emerald Inc. from the Eastern shareholders in exchange for 18,774,448 shares of the common stock of Paragon. Under the terms of the agreement pertaining to the transaction, an additional 4,018,564 shares of Paragon's common stock will be issued to the shareholders of Eastern in exchange for the remaining 18 percent of the outstanding common stock of Eastern at such time as the shareholders of Paragon approve an amendment to Paragon's Articles of Incorporation to permit the issuance of the additional shares. In addition, as a part of the transaction, Paragon issued 2,025,929 shares of the common stock to finders in connection with the transaction. Paragon also reported that Eastern's approximate net worth as of Sept. 22, 1994, was $4,047,147 (U.S.) which consisted of the assignment of the proceeds of certificates of deposit issued by a Russian bank. The certificates of deposit have maturities during January and February, 1999. Paragon also announced that pursuant to the agreement, Sidney Abusch and Michael J. Darmstadter were appointed to the board of directors and the E. Lee Blackman and Terryl K. Jensen resigned as directors of Paragon. Sidney Dworkin remained as a director of Paragon. It is anticipated that the number of directors on Paragon's board of directors will be increased in the near future. In addition, Paragon's board of directors retained a consultant to review the books, records and operations of Paragon and make recommendations regarding Paragon's future business. -0- 10/10/94 /CONTACT: Investor Relations, 818-380-1063/ (PGMT)
CO: Paragon Mortgage Co.; Eastern Emerald Inc. ST: Georgia IN: FIN SU: TNM
JP-BB -- LA022 -- 2896 10/10/94 15:41 EDT
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|Date:||Oct 10, 1994|
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