THE QUESTEX GROUP LTD. ANNOUNCES LETTER OF INTENT TO ACQUIRE AMERICAN CONTRACTORS' FUNDING INC.
SCOTTSDALE, Ariz., July 13 /PRNewswire/ -- The Questex Group Ltd. (OTC Bulletin Board: QTXG) announces that it has today signed a letter of in?t to acquire, by share exchange, all the issued and outstanding shares of American Contractors' Funding Inc., an Arizona-based commercial lender. The agreement calls for Questex to issue 500,000 Class "A" Common Restricted Shares to Bryan Craig in exchange for all the issued shares of ACF making this company a wholly owned subsidiary of Questex. ACF is a commercial lender that provides short-term financing to businesses which have been awarded contracts to supply products or services to the U.S. Government. ACF specializes in this market for two reasons: A) It receives a guarantee of repayment by the government; B) It is extremely profitable. ACF has only been limited in its three-year history by its ability to get sufficient funds out into the marketplace to garner additional business that is available. Based on the existing financial information supplied to Questex by ACF it was clear to the Questex board that by utilizing its position as a public company having access to the financial community that working to raise $10 million for its new subsidiary would be realizable. ACF reports that it reasonably projects that this $10 million put into the available market would earn Questex/ACF $2.8 million pre-tax every 12-month period. Questex sees this merger as a positive and important step in its growth to become a fully integrated junior industrial. Sales and production in the Tactile signage division continues to grow and a full market report on this subsidiary's planned growth into the international marketplace will soon be available. -0- 7/13/93 /CONTACT: Richard Wensel, president of The Questex Group, 602-948-7978/ (QTXG)
CO: The Questex Group; American Contractors' Funding Inc. ST: Arizona IN: FIN SU: TNM
JL-JB -- LA026 -- 1058 07/13/93 17:03 EDT
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|Date:||Jul 13, 1993|
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