IRVINE, Calif., June 12, 2014 /PRNewswire/ -- Capstone Financial
Group, Inc. (OTCBB: CAPP) ("Capstone") announced today that it has
agreed to invest $57 million in
Twinlab Consolidation Corporation through a private offering.
The 3-year agreement struck between the two companies allows
Capstone to purchase shares of Twinlab Consolidation Corporation
common stock directly and provides for the purchase of additional
shares of common stock through the exercise of warrants during that
time. Under the agreement, Capstone's total investment in
Twinlab Consolidation Corporation equals $57
million in cash and represents an ownership stake of just
over 38 percent.
"We are determined to build the best franchise in Health &
Wellness and we have laid out a clear plan to deliver long-term
shareholder value," said Twinlab Consolidation Corporation Chief
Executive Officer Tom
Tolworthy. "I am confident that we have the capital
and liquidity we need to run our business. At the same time,
I also recognize that Capstone's large investment in us is a strong
endorsement of our vision and our strategy."
"Twinlab Consolidation Corporation is a strong, well-led company
and we called Tom to tell him we wanted to invest in it," said
Capstone Financial Group, Inc. Chairman and Chief Executive Officer
Darin Pastor. "We are
impressed with the future profit-generating abilities of this
franchise, and that they are acting aggressively to make strategic
acquisitions to capitalize on the fast growing Health and Wellness
industry. Twinlab Consolidation Corporation is focused on
consolidating this fragmented, yet ever expanding industry, and we
see the value of the company's strategy."
"This initial investment by Capstone sets the framework for
Twinlab Consolidation Corporation to acquire Twinlab and two
related Health & Wellness companies," added Capstone Financial
Group, Inc. President and Chief Investment Officer George Schneider. We are also prepared to
support Twinlab Consolidation Corporation in its future
acquisitions."
About Capstone Financial Group, Inc.
Founded in 2013
by Chairman and Chief Executive Officer Darin Pastor, Capstone Financial Group, Inc.
(CAPP) is an exclusive holding company headquartered in
Irvine, Calif. Capstone uses
its own capital to acquire the outstanding stock of other
companies. Capstone works closely and constructively with the
management and boards of its portfolio companies, aiming to
significantly enhance their long-term earnings power and thus
increase shareholder value. For more information, visit
www.capstonefinancialgroupinc.com.
Forward-Looking Statements
Statements in this press
release relating to Capstone Financial Group, Inc.'s future plans,
expectations, beliefs, intentions, and prospects, such as
"forward-looking statements" are subject to material risks and
uncertainties. When used in this press release, the words
"will," "future," "expect," "look forward to," similar expressions
and any other statements that are not historical facts are intended
to identify those assertions as forward-looking statements.
Any such statement may be influenced by a variety of factors, many
of which are beyond the control of Capstone Financial Group, Inc.
that could cause actual outcomes and results to be materially
different from those projected, described, expressed or implied in
this press release due to a number of risks and
uncertainties. Accordingly, no assurances can be given that
any of the events anticipated by the forward-looking statements
will transpire or occur. All information set forth in this
press release is current as of June
12, 2014. Capstone Financial Group, Inc. undertakes no
duty to update any statement in light of new information or future
events.
SOURCE Capstone Financial Group, Inc.