Fortress Financial Group, Inc. — Further Particulars on Acquisition Company Provides Further Details on the “Trinity Mercantile Finance” Group Acquisition
SOURCE:
FORTRESS FINANCIAL GROUP, INC.
2008-04-02 09:39:00
Fortress Financial Group, Inc. — Further Particulars on Acquisition
Company Provides Further Details on the “Trinity Mercantile Finance” Group Acquisition
NEW YORK, NY–( EMWNews – April 2, 2008) – Fortress Financial Group, Inc. (
Agreement” to acquire the California based, “Trinity Mercantile Finance”
Group of Companies.
Trinity Mercantile Finance Group is a substantial Mortgage Orginator; with
a subsidiary company operating a short term consumer finance division.
Trinity Mercantile Finance Group will contribute an amount of not less than
US$4million to Fortress Financial Group, Inc. after-tax profits;
immediately. This is based upon their historical earnings performance.
“Trinity Mercantile Group” has to date, operated under a number of
different trade names; this will now all be consolidated under one company,
to be branded as “Trinity Mercantile Finance;” and operating as a wholly
owned subsidiary company of Fortress Financial Group, Inc.
The “edge” enjoyed by Trinity Mercantile Finance Group (“Trinity”) is in
its Licensed Lending subsidiary company which advances short term secured
lending to qualifying consumers whose FICO rating scores do not yet permit
them to purchase their desired real estate. Trinity settles all arrear
debts for and on behalf of the consumer and works with a Credit Rating
Agency to immediately improve the consumer’s FICO rating. The consumer then
qualifies for the Mortgage as his FICO rating score increases; the
commission on that Mortgage is paid to Trinity along with the interest on
the short term loan advanced by Trinity to the consumer. These loans are
made at up to 25% interest; and these funds are lent out for periods of
time ranging from three weeks to three months; depending upon the
consumer’s FICO rating requirements. Trinity has had a 1% bad debt ratio in
this lending division over the past five years. It is fair to say that the
Management of Trinity has perfected this system over the years.
Fortress Financial Group, Inc. is “injecting” an amount of US$11million
into the Trinity Group Lending subsidiary Company; as Share Capital, to
allow it to grow at a massively increased rate. Its growth to date has been
constrained by fairly limited capital available for lending.
The Chief Executive Officer, General Counsel and all other management of
the “Trinity Mercantile Group” will remain unchanged; it will be “business
as usual” for Trinity. Fortress Financial Group, Inc. has no absolutely no
intention to change the Trinity Management Team whatsoever.
The Management Team of Trinity will be entering into long term contracts
with the Group and are being offered an array of incentives including a
“profit sharing structure”: based upon predetermined financial targets.
The acquisition of Trinity by Fortress; is being structured in a manner
whereby Fortress assumes no debt whatsoever.
A fully Licensed Mortgage Bank, based in New York City but operating a
national basis; and very closely allied with the Trinity Mercantile Finance
Group; is viewed as a critical acquisition by Fortress Financal Group, Inc;
as it will in effect, increase the After-Tax profits of the “Trinity
Mercantile Finance Group” by as much as 300%. Fortress Financial Group,
Inc. is confident that this acquisition will be completed shortly. The
Management Team of Trinity will work very closely with this Bank, once
acquired; and it is envisaged that certain “key management members” of
Trinity, will join the Board of Directors of this Bank in an Executive
Capacity.
The acquisition of this bank will allow Fortress Financial Group, Inc. to
easily acquire large amounts of Independent Mortgage Brokers; with the
result of massively increased profits flowing to the bottom line earnings
of the Group.
Fortress intends to permit the Bank; once acquired, to use a portion of
Fortress’s substantial Balance Sheet in order to radically increase the
Bank’s Capital Base; thereby enabling it to grow at an extremely rapid
rate. All Independent Mortgage Brokers acquired by Fortress would “feed
their mortgages” through the Bank; and utilise the Trinity “FICO
Assistance” system.” The effect of this strategy upon Fortress Group
profits is potentially massive.
Stockholders are advised that that upon the completion of these
acquisitions; Fortress will immediately commence its very aggressive
acquisition plan to build its “distribution pipeline;” through large scale
acquisitions of Independent Mortgage Brokers in targeted States.
Stockholders will be updated in the next few days as to the full details of
these acquisitions. The fact that these various entities are all regulated
and Licensed; has resulted in extensive legal and statutory filing work
being incurred; and the completion of these acquisitions is expected to
take circa 21 days.
Alan Santini, the Chief Executive Officer of Fortress Financial Group, Inc.
commented today that he was “delighted that the Company’s plans were being
coming to fruitition; and on a much larger scale than he had previously
envisaged.” Alan Santini added the “contribution to Fortress; brought about
by the Trinity Management team coming aboard, was absolutely invaluable
going forward; given the wealth of experience and vision of this Team.” He
added that he was “honoured to be working with these individuals on a day
to day basis.”
About Fortress Financial Group, Inc.
Fortress Financial Group, Inc. is primarily engaged in the issuing and
marketing of prepaid debit card and related payment solution activities. It
acquired Moneyworx, Inc., a reseller of MasterCard prepaid USA Domestic and
International Prepaid Debit Cards. Fortress Financial Group, Inc. will be
launching its own label “Fortress” International Debit Card in the second
quarter of 2008.
Upon the closure of the Trinity Mercantile Finance and the Mortgage Bank
acquisitions; Fortress Financial Group, Inc. will expediting its plans to
become a broadly based Consumer Finance Group. The “Mortgage Division” will
comprise the vast majority of the Group’s earnings in the medium term.
The Company is utilizing is substantial Balance Sheet of circa US$1.4
billion comprised of quoted and unquoted Gold Mining & Exploration stocks;
to aggressively fund a large number of acquisitions in the consumer
financial services sector; initially focused on the Mortgage Lending
sector.
Fortress Financial Group, Inc. (formerly Great West Gold, Inc.), was a gold
mining exploration stage company, engaged in the acquisition and
exploration of mining properties in the United States. The Company retained
these Gold Mining Exploration interests as portfolio assets. The Company
holds circa 48% of the outstanding stock in Hunt Gold Corporation as an
investment.
The Company is now exchanging it interest in the “South Copperstone,” and
“Bouse” Gold Mining Exploration properties for shares of Common Stock in a
USA Gold Mining & Exploration Company.
This release contains “forward-looking statements” within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section 21E the
Securities Exchange Act of 1934, as amended and such forward-looking
statements are made pursuant to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. “Forward-looking statements”
describe future expectations, plans, results, or strategies and are
generally preceded by words such as “may,” “future,” “plan” or “planned,”
“will” or “should,” “expected,” “anticipates,” “draft,” “eventually” or
“projected.” You are cautioned that such statements are subject to a
multitude of risks and uncertainties that could cause future circumstances,
events, or results to differ materially from those projected in the
forward-looking statements, including the risks that actual results may
differ materially from those projected in the forward-looking statements as
a result of various factors, and other risks identified in a companies’
annual report on Form 10-K or 10-KSB and other filings made by such company
with the SEC.
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