ERIE, PA--(Marketwired - March 04, 2014) - Fortitude Group, Inc. (OTC: FRTD) is pleased to announce that on February 28, 2014, the Company entered into a master funding agreement whereby, under the terms of the agreement, Fortitude will become the majority shareholder of a fully reporting Bulletin Board public company for the specific purpose of completing the funding of PRIMARQ while not diluting the current share structure of Fortitude.
Thomas J. Parilla, CEO of Fortitude, stated, "Under the preliminary terms of our purchase agreement, we have committed to invest $4 million USD for a 45% stake in PRIMARQ. If we were to use the equity of Fortitude to perfect this transaction, even at today's closing price, the dilution to our shareholders would be massive. To combat this, our partners at G3 designed this unique funding strategy which upon completion will allow us to acquire control of this fully reporting trading company. Instead of diluting Fortitude, we do the opposite strategy and issue our shareholders a dividend in this fully reporting company which upon closing, will give us the ability to complete the PRIMARQ investment within 30-days."
The agreement calls for closing this acquisition on or before March 7, 2014, at which time the Company will announce to the public, the name and symbol of the new publicly traded portfolio company. The release will further outline the dividend ratio to be issued to Fortitude shareholders as well as the effective date for this dividend.
Fortitude Group, Inc. is a diversified company with investments in multiple sectors of the economy targeting joint ventures, wholly owned subsidiaries and/or majority/minority positions that cross various market segments with the goal of creating a quality company that builds intrinsic value for its shareholders.
Forward Looking Statements
This press release contains forward-looking statements. Such forward-looking statements are subject to a number of risks, assumptions and uncertainties that could cause the Company's actual results to differ materially from those projected in such statements. Forward-looking statements speak only as of the date made and are not guarantees of future performance. We undertake no obligation to publicly revise any forward-looking statements.