TORONTO, March 24, 2005 (PRIMEZONE) -- Reliant Home Warranty Corporation (OTCBB:RHWC) ("Reliant"), formerly Dialex Minerals Inc. (DLXM), announces that it has adopted a name change and reverse split of its stock, undergone a change of control, completed the acquisition of a home warranty business and divested its diamond exploration subsidiary.
Name Change and Reverse Split
Effective March 16, 2005, pursuant to a registration statement filed on Form 14-3 with the Securities and Exchange Commission, the Corporation changed its name from Dialex Minerals Inc. to Reliant Home Warranty Corporation and undertook a reverse split of its outstanding shares on the basis of one (1) new share for twenty-two (22) old shares reducing its outstanding shares from 44,438,786 to 2,019,945.
Pursuant to a share exchange agreement effective March 23, 2005, the shareholders of 1604494 Ontario Inc., discussed under, "Acquisition of Home Warranty," acquired control of the Corporation through the acquisition of 36,455,000 pre-consolidated free-trading shares or an aggregate of 1,657,045 shares post-consolidated, and the former directors of the Corporation, Alexander Stewart, Wallace Stonehouse, Kirk Boyd, Stephen Stewart and Neil Novak, agreed to resign upon the appointment of the new directors described below, Kevin Hamilton, Valeri Guilis, Boyd Soussana and the Honourable John Roberts. The old board resigned, and the new board took office effective March 23, 2005, in accordance with the business acquisition described below.
New Board of Directors
Kevin Hamilton, age 43, has been appointed Chief Executive Officer, Chairman of the Board of Directors and President of the Corporation. He has established himself as an innovative manager in the North American home value warranty industry over the past few years. Kevin Hamilton has served in the Canadian Armed Forces.
Boyd Soussana, age 42, has also been appointed a director of the Corporation. He is also Vice President of CreditorLife.com a financial services company.
Valeri Guilis, age 44, has been appointed Secretary/Treasurer and Chief Financial Officer of the Corporation. He has worked as a construction and property management accountant, general accountant, and controller.
The Honourable John Roberts P.C., age 72, has been appointed a Director of the Corporation. He has served as Secretary of State in the Canadian Federal Cabinet and is a Privy Counsellor.
Acquisition of Home Warranty/Insurance Business
Pursuant to a stock exchange agreement completed on March 23, 2005, the Corporation acquired all of the issued and outstanding shares of 1604494 Ontario Inc. in return for the acquisition of 76,000,000 treasury shares of the Corporation, issued to nine (9) corporate entities.
The Corporation offers a proprietary line of Home Value Warranty Programs, designed for sale to purchasers of residential real estate (single family homes and condominiums). The product line consists of two products:
i. Premium Light (100% Value Guarantee)
The Premium Light Value Warranty guarantees the original
purchase price of a residential property (home or
condominium) for the period of five years from the date
of purchase. It allows the purchaser to exercise the warranty
on the fifth anniversary of the original purchase.
ii. Premium Gold (105% Value Guarantee)
The Premium Gold Value Warranty guarantees that the value
of a residential property (home or condominium) will increase
in value by 5% in five years from the date of purchase. It
allows the purchaser to exercise the warranty on the
fifth anniversary of the original purchase.
In all cases the Home Warranty Program is addressed to a middle-class buyer, with the present value cap of $700,000 per property. The product is priced as a percentage of purchase price (between 1.25% and 2%, depending on the Program chosen).
Divestiture of Diamond Exploration Subsidiary
Coincident with acquisition of the home warranty insurance business, the Corporation transferred all of the issued and outstanding shares of its wholly owned subsidiary, Condor Diamond Corp., to Condor Gold Corp.
This press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21B of the Securities Exchange Act of 1934. Any statements that express or involve discussion with respect to predictions, expectations, beliefs, plans, projections, objectives, goals, assumptions or future events or performance are not statements of historical facts may be forward-looking statements. Forward-looking statements are based on expectations, estimates and projections at the time the statements are made to involve a number of risks and uncertainties which could cause actual results or events to differ materially from those presently anticipated. For a summary of such risks and uncertainties, see the Company's periodic reports and other filings with the Securities and Exchange Commission.