Consumers Financial Signs Agreement for $5.2 Million Financing
November 08 2004 - 4:05PM
PR Newswire (US)
Consumers Financial Signs Agreement for $5.2 Million Financing
CEDARHURST, N.Y., Nov. 8 /PRNewswire-FirstCall/ -- Consumers
Financial Corporation (OTC Pink Sheets: CFIN) ("CFIN") today
announced that it has signed an Agreement to finance its
acquisition of Fear & Fear, Inc., an insurance agency with ten
offices located in and around Syracuse, New York. The Agreement
signed was with Independent Financial Services, Inc. and Blue Light
Capital Partners, LLC of Westerly, Rhode Island. Jack I. Ehrenhaus,
Chairman of the Board, in announcing the contract signing for the
purchase of the Fear & Fear Agency last month stated, "We are
excited about the prospects that the acquisitions gives to
Consumers Financial's bottom line. We fully believe that the Fear
& Fear agency will be a great asset that not only will help our
company to expand but also help to increase the value for our
shareholders. Although the structure of the investment being
arranged by these advisors has not been finalized, the exact form
of the instrument will be tooled to match cash flow and capital
needs for expanding the Fear & Fear insurance franchise." The
project involves $5.2 million in equity and debt. The details of
the placement are being negotiated. Fear & Fear operates ten
office locations and one administrative office. The company
specializes in automobile insurance and its service area covers
most of central and northern New York State. CFIN expects that this
acquisition will generate approximately $3 million in earned income
from premiums and an EBITDA of over $1,350,000. Mr. Ehrenhaus
further stated, "In addition to this financing commitment, we have
also concluded an exchange of stock with a small private eBay
auction site marketing group by the name of Subasta, Inc. While the
current operations of this enterprise are relatively small, we
recognize that eCommerce is a rapidly growing market and with our
partnership with Subasta, we could create a great dividend for our
shareholders. We were particularly impressed with Subasta's
business platform and the capabilities of its management. The
company operates with a very healthy profit margin and we feel it
will continue to grow and add value to our business." This press
release includes or may include certain statements, estimates and
forward-looking projections of the company with respect to the
anticipated future performance of the Company. Such statements,
estimates and forward- looking projections reflect various
assumptions of the management of the Company that may or may not
prove to be correct and involve various risks and uncertainties
including, but not limited to, the risk factors contained herein.
DATASOURCE: Consumers Financial Corporation CONTACT: Howard A.
Scala, President, Wall Street Communications, Inc.,
+1-800-338-9338, for Consumers Financial Corporation
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