Supplemental Information for Strategia Corp. Transaction.Business Editors TEMPE, Ariz.--(BUSINESS WIRE)--March 22, 2001 Strategia Corp.'s, (OTC OTC See: Over-the-counter. OTC See over-the-counter market (OTC). : SAEA), subsidiary, EnerGCorp Inc., a Florida corporation ("EGCI EGCI Exponentially Generated Configuration Interaction EGCI Eccma Global Code Identifier EGCI Eccma Global Class Identifier EGCI Eccma Global Commodity Identifier "), is providing the following supplemental information to its press release dated March 21, 2001, with respect to its recently completed transaction with American Home For the American mortgage lender, see . The American Home is a center of intercultural exchange located in Vladimir, Russia. The home is designed to model a typical American suburban home and its main focus is the ESL school that provides lessons for Russian students. Capital Corp., a Nevada corporation ("AHCC AHCC Active Hexose Correlated Compound (health food supplement) aHCC advanced Hepatocellular Carcinoma AHCC Arizona Hispanic Chamber of Commerce AHCC Arlington Heights Chamber of Commerce AHCC Appaloosa Horse Club of Canada "). Pursuant to that transaction, EGCI contributed to AHCC all of the shares of its 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. , Swiss Asset Management Inc., an Arizona corporation ("Swiss") in exchange for stock and warrants. Swiss was formed in June 2000 to specialize in real estate related bridge financing Bridge Financing A method of financing, used by companies before their IPO, to obtain necessary cash for the maintenance of operations. Notes: These funds are usually supplied by the investment bank underwriting the new issue. . Since that time, Swiss has generated a significant loan portfolio, totaling approximately $15 million at closing. Swiss is managed by Bob Fillion, a 25-year professional in the real estate mezzanine lending finance business. Swiss's portfolio consists of short-term non-conventional first mortgage loans that have a conservative loan to value ratio and high average returns. Since its inception, Swiss has averaged a net operating margin Net operating margin The ratio of net operating income to net sales. in excess of 80 percent. Management anticipates that as the U.S. economy continues to slow, liquidity will diminish further and provide excellent opportunities for Swiss to further expand its real estate loan portfolio. AHCC is a diversified real estate financial services company that is engaged in mortgage banking, brokerage and real estate finance. AHCC has a successful 17-year history of operation in real estate mortgage banking and brokerage in San Diego. AHCC has been particularly successful in recent years in developing a significant volume of mortgage business from its homebuilder clients. As mortgage rates continue to ease in the United States, management anticipates that in 2001 the refinancing market will provide an excellent opportunity for the further expansion of AHCC's mortgage banking and brokerage business. The amalgamation of the above-mentioned businesses will result in a reduction of the organizations' consolidated overheads, the diversification of the resulting entity's sources of income and an expanded source of new business, all of which will positively affect earnings. Budgeted net profit for the combined operations for 2001 is $3 million on budgeted revenues of $5 million. This profit could double with a 100 basis point drop in U.S. interest rates. This press release and statements by Strategia in reports to its stockholders and public filings, as well as oral public statements by company representatives, may contain certain forward-looking information and are made pursuant to the 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. provisions of the 1995 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 . Those statements made are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected. These forward-looking statements are based on expectations that were current at the time they were written. Consequently, Strategia's actual results could differ materially from the expectations expressed in the forward-looking statements. Contributing factors which could cause actual results to differ from those contained in the forward-looking statements include: the level of defaults on loans in the portfolio, the lack of a secondary market in loans of the type included in the portfolio, the lack of diversity, environmental risks relating to the ownership of foreclosed property, the level of competition for mortgage financing, fluctuations in interest rates and other economic conditions. EnerGCorp. Inc. is a subsidiary of Strategia Corp. Proprietary Industries Inc., an Alberta, Canada, corporation, owns approximately 97 percent of the issued and outstanding shares of common and 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. of Strategia. In a transaction that closed in December 2000, Proprietary exchanged its 95.6 percent ownership interest in EGCI for common and preferred shares Preferred shares Preferred shares give investors a fixed dividend from the company's earnings and entitle them to be paid before common shareholders. See: Preferred stock. of Strategia. For further information about Proprietary, contact: Peter J. Workum, president and Theodor Hennig, chief financial officer Website: www.proprietaryinc.com |
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