Printer Friendly

NewMarket Technology, Inc. Acquires Paragon Financial Corporation in Reverse Merger of NewMarket Latin America Subsidiary with a Profitable $30 Million 2007 Revenue Forecast.

NewMarket Updates Shareholders on Strategy to Publicly List Subsidiary Operations to Improve Corporate Growth and Enhance Shareholder Return

DALLAS -- NewMarket Technology, Inc. (OTCBB:NMKT) yesterday completed the transaction with Paragon Financial Corporation (OTC:PGNF) to combine NewMarket's Latin American operations into Paragon. Under the terms of the share exchange agreement, NewMarket becomes the majority shareholder of Paragon through the receipt of a convertible preferred stock which includes majority voting rights. The convertible preferred stock restricts NewMarket from converting into Paragon common stock for a period of one year. The Paragon corporate name will be changed to NewMarket Latin America and an application for a new ticker symbol will be filed. NewMarket projects over $20 million in profitable revenue for 2006 from its Latin American operations and has issued a revenue forecast of $30 million for the Latin American operations with profitability for 2007.

In a letter to shareholders, NewMarket CEO Philip Verges outlines details on the Company's overall plan to improve corporate growth and enhance shareholder return by publicly listing subsidiary operations.

Dear Fellow Shareholders -

The transaction completed yesterday with Paragon Financial is the second transaction in recent months to effectively publicly list one of NewMarket's subsidiary operations. In the fourth quarter of last year, NewMarket completed its first transaction independently listing our operations in China. The operations name has recently been changed to NewMarket China (OTCBB:NMCH). The operations consolidated into NewMarket China are anticipated to report well over $20 million in 2006 revenue with a 2007 forecast for $40 million in revenue.

The independent listing of NewMarket subsidiaries is core to the Company's overall growth strategy and central to NewMarket's plan to enhance shareholder value through building the parent company's financial results and distributing dividends in subsidiary stock to shareholders. NewMarket is in the business of introducing new technologies to new markets. The market introduction of a new technology requires investment. Shareholders expect the company to show a net return on the investments made to introduce new technologies to emerging markets.

A High-Tech and High Growth Business Strategy

NewMarket went public in 2002 through a reverse merger. The company used stock to acquire and fund emerging technology assets and technology service companies in target regions where NewMarket planned to sell emerging technologies in the future. In 2005, NewMarket began to fund emerging technology market development from cash generated by operations and to cease the use of stock to otherwise fund continued growth.

Entering the Next Stage of High Growth

By publicly listing emerging technology subsidiaries and regional operating service companies, NewMarket enables a next stage of rapid growth. NewMarket subsidiaries can utilize their own public stock to acquire and fund further emerging technology growth. The accelerated growth potential enabled by stock leveraged investment will not involve the further use of NewMarket stock.

Enhanced Shareholder Returns through Dividend Distributions

NewMarket shareholders benefit from the rapid growth of self funding subsidiary companies. Additionally, NewMarket shareholders will have the opportunity to directly monetize the investment that NewMarket has made in developing emerging technology assets and regional technology service companies. NewMarket will distribute stock in the independently listed subsidiary operations to NewMarket shareholders through dividend distributions as the subsidiaries build their respective operations and develop their own shareholder base.

Additional More Independent Public Listings of Subsidiary Operations

A third transaction to publicly list another NewMarket subsidiary operation is imminent. NewMarket is in the final stages of acquiring controlling interest in Diamond I, Incorporated (OTCBB:DMOI) to create a publicly listed Broadband Wireless Technology subsidiary. Three additional subsidiaries are being prepared for public listings.

Growth from Self Funding Subsidiaries Not Included in 2007 Forecast

NewMarket has forecasted $120 million in profitable revenue for 2007. That forecast only represents organic growth expectations. We have not included in the forecast the potential growth from subsidiary stock leveraged investment through accretive and strategic acquisitions.

The public listing of NewMarket subsidiaries has been a long-term plan. These first listings of subsidiary operations is the beginning of an exciting new stage of growth for NewMarket. I look forward to reporting the Company's continued progress. I would also look forward to an opportunity to meet any shareholder and encourage you to watch for one of our frequent public presentations.

Thank you,

Philip Verges
COPYRIGHT 2007 Business Wire
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2007, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

Article Details
Printer friendly Cite/link Email Feedback
Publication:Business Wire
Date:Feb 21, 2007
Previous Article:SpineVision(R) Establishes Wholly Owned Subsidiary in the UK.
Next Article:Chick-fil-A(R) Reaffirms Commitment to Radiant Systems' Technology.

Related Articles
NewMarket Technology, Inc. to List Second Subsidiary in Merger of $20 Million Latin America Operation with Publicly Listed Paragon Financial...
NewMarket Technology, Inc. to Acquire TekVoice Communications, Inc. for VoIP Footprint Expansion and to Contribute to Latin America 2007 $30 Million...
NewMarket Technology, Inc. Announces Times Square Presentation on Dividends from Independent Listings of Subsidiaries with $80 Million in Forecasted...
NewMarket Technology, Inc. and Paragon Financial Corporation Sign Binding Agreement for Public Listing of NewMarket Latin American Subsidiary with...
NewMarket Technology, Inc. Files 8k on Binding Agreement with Paragon Financial Corporation for Public Listing of NewMarket Latin American Subsidiary...
NewMarket Technology, Inc. Announces Ticker Symbol Change of Subsidiary, NewMarket China, Inc., with over $20 Million 2006 Revenue and $40 Million...
Paragon Financial Corporation Executes Agreement to Acquire Latin America Operation with $20 Million in Profitable 2006 Revenue and $30 Million 2007...
NewMarket Technology, Inc. Completes Share Exchange Agreement to Publicly List NewMarket Latin America Subsidiary and Trigger Dividend Issue to...
NewMarket Technology, Inc. Announces Name and Ticker Symbol Change of Paragon Financial Corporation to NewMarket Latin America, Inc. Trading Under...
NewMarket Latin America, Inc. Appoints Frank A. Romanoski to New Board of Directors.

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters