AMERICAN SOUTHWEST MORTGAGE INVESTMENTS CORPORATION ACQUIRES ASSETS OF RESIDENTIAL MORTGAGE INVESTMENTS
AMERICAN SOUTHWEST MORTGAGE INVESTMENTS CORPORATION ACQUIRES
ASSETS OF RESIDENTIAL MORTGAGE INVESTMENTS
FORT WORTH, Texas, Nov. 6 /PRNewswire/ -- American Southwest Mortgage Investments Corporation of Tucson, Ariz. (AMEX: ASR) and Residential Mortgage Investments, Inc., of Fort Worth, Texas (AMEX: RMI) announced today that ASR completed yesterday the acquisition of substantially all of the assets of RMI for $1,055,000 in cash and 1,594,405 newly issued shares of ASR common stock.
RMI stockholders approved the terms of the asset sale and the subsequent dissolution and liquidation of RMI at RMI's annual meeting of stockholders on Oct. 31, 1991. The shares of ASR common stock have been registered with the Securities and Exchange Commission and are listed for trading on the American Stock Exchange.
RMI also announced that it has filed Articles of Dissolution with the state of Maryland to commence its dissolution and liquidation. RMI's board of directors has declared a liquidating distribution of $.25 in cash and approximately .3778 shares of ASR common stock for each share of RMI common stock held of record as of the close of business today. To oversee the payment of the liquidating distribution, RMI has secured the services of Ameritrust Company, N.A. to act as RMI's exchange agent.
Gerald Hartman, president of RMI, stated, "We are pleased that this transaction has been completed. Now our stockholders own an equity interest in a larger company with a more liquid trading market. The experience of ASR management, ASR's history of paying dividends and ASR's profitability in the past highlight for our stockholders the excellent opportunity they now have."
Jon A. Grove, president of ASR, stated, "We are excited about this opportunity to expand our capital and asset base and believe that the acquisition provides long-term benefits to both our stockholders and the former RMI stockholders and represents substantial progress toward our goals of increasing stockholders' equity and long-term profitability. We do not expect the transaction to be dilutive to our earnings."
/CONTACT: Joe Chan of American Southwest Mortgage, 602-748-2111, or Donna Dempsey, 817-390-2000/
(ASR) (RMI) CO: American Southwest Mortgage Investments Corporation;
Residential Mortgage Investments, Inc. ST: Texas IN: SU: TNM PS -- NY105 -- 1968 11/06/91 18:42 EST