TORONTO, Dec. 13, 2004 (PRIMEZONE) -- Ofek Capital Corp. (Pink Sheets:OFCC) announces that it has entered into a letter of intent to acquire 100% of Kaptor Financial Inc. ("Kaptor") in an all share exchange transaction, resulting in Kaptor Shareholders having a controlling interest. The acquisition will be by the issuance of restricted shares based on the net equities of the companies.
Established in 1989 and headed by its founder Eric Inspektor, Toronto based Kaptor is a mezzanine lender and financing facilitator specializing in commercial and industrial mortgages, inventory and receivable financing, convertible debt and equity participation.
Kaptor has had a consistent track record of profitability and has developed and successfully sustained the ability to bring value added services and funding to facilitate its clients' short term needs. Its target market niche is the 2 to 5 year old, small to medium sized company primarily in manufacturing, retail and distribution businesses, with a preferred deal size of between $400,000 to $1,250,000. In recent years Kaptor has averaged 10 to 15 deals annually.
This acquisition is expected to close by the beginning of April 2005, subject to completion of due diligence and the approval of both Kaptor's and Ofek's shareholders. Management projects a consolidated balance sheet reflecting a 700% increase in Net Shareholders' Equity, net of any goodwill, from less than $715,000 to more than $5,000,000 including cash of $1,500,000, and a 300% increase in Gross Revenue from $567,000 to over $2,000,000 for the first 12 months of operations.
The post acquisition strength of Ofek will enable the material enhancement of its operations by the significant reduction of financing costs and the addition of Kaptor. Furthermore, this will provide the company with the ability to aggressively pursue the development and expansion of its business plan, all leading to stronger performance, profitability and enhanced shareholders' value.
Eric Inspektor will be appointed President and CEO and Shalom Romm will remain the Chairman and will be appointed Director of Business Development.
Shalom Romm, the current CEO of Ofek, notes, "This acquisition meets Ofek's goals in establishing a low capital cost and the immediate expansion of its core business. It will also enable Ofek to expand its geographical reach as well as continue to develop its financial services."
About Ofek Capital
Ofek (www.OfekCapital.com) is a North American financial services company that operates within the sub-prime lending and financing market. Ofek believes that the sub-prime market is the most lucrative niche in the financial services industry.
-- Ofek leases used cars through its Ontario subsidiary, AJM
Leasing
-- Ofek, through Kaptor, will offer mezzanine financing, commercial
and industrial mortgages, inventory and receivable financing,
convertible debt and equity participation
-- Mortgage Bankers of North America, a California subsidiary,
anticipates offering traditional mortgage banking services in 24
states
-- SecondaryMarkets, a California subsidiary, anticipates the
development of a proprietary, patent pending, automated
submission and lending approval software system. It will be
state-of-the-art and capable of generating immediate loan
approval from multiple loan providers
This release, as well as the interview and statements made during it, contains forward-looking statements within the meaning of Section 21E of the Securities and Exchange Act of 1934, which reflect management's expectations regarding Ofek's future growth, results of operations, performance and business prospects and opportunities. These statements reflect management's current beliefs and are based on information currently available to management. Forward-looking statements involve significant risks, uncertainties and assumptions. A number of factors could cause actual results, performance or achievements to differ materially from the results discussed or implied in the forward-looking statements. Ofek Capital Corp. takes no obligation to update or correct any or such forward-looking statements.