OXFORD, Miss., April 11, 2005 (PRIMEZONE) -- Modern Technology Corp. (OTCBB:MOTG), a business development and acquisition company, released today audited financials for its recent acquisitions.
As of June 30, 2004, MOTG revenues exceed $10,000,000. As of January 25, 2005, MOTG's cash position is $617,587 and total assets of MOTG are $7,012,631 and the company has a positive Shareholder Equity of $1,466,499. Further, MOTG recently added to its asset base a $1.5 million Convertible Debenture in Demarco Energy Systems of America, Inc. (Other OTC:DMES). Converting this debenture provides $1,500,000 in revenue for MOTG. MOTG acquired the $1.5MM asset as part of an agreement with four institutional investors, who provided MOTG with $3.5 million in financing.
MOTG is in late-stage negotiations with several additional acquisitions. The company intends to announce these acquisitions as they are completed. The expected revenue from these acquisitions exceeds $15,000,000. We anticipate MOTG revenues to be $25,000,000 by mid-year 2005.
MOTG anticipates another $25,000,000 in revenues from further acquisitions before end-of-year 2005 bringing MOTG projected revenues to $50,000,000.
MOTG believes closing an additional $25,000,000 in revenues beyond its current projections is possible and has set a year-end goal of $75,000,000 for 2005.
To enhance investor liquidity and promote institutional participation, MOTG intends to apply for a listing on a larger stock exchange as soon as is practicable. MOTG already meets many or most of the requirements for listing.
Anthony Welch, Chairman said: "In the last several months we have rapidly progressed from nominal operations to over $10MM in revenues and over $7MM in assets. We have a strong cash position and our internal growth initiatives are well underway. With only about 15 million shares issued and outstanding that's about $0.66 of sales per share, approximately $0.46 cents of assets per share, and a net shareholder equity position of over $1.4MM. Our rapid growth and success demonstrate the power of our model. We provide equity building transactions for our investors to create significant shareholder equity supported by stable, strong revenues. In addition, the company frequently declares both stock and cash dividends. Our last cash dividend was in March of 2004. Creating investor value is our paradigm and we continue to deliver results."
Mr. Welch added: "I also wish to provide some guidance to current and prospective shareholders. With the current portfolio, and the anticipated additions, we expect calendar 2005 revenue of between $25 million and $50 million. Under consideration for the second half of 2005, we expect revenues could be between $50 million and $75 million. I caution shareholders and potential shareholders that this guidance is our best, good faith estimate based on current conditions and numerous assumptions about the industry, our access to financing, the competitive and regulatory landscape and, particularly for the second portion of the guidance, our ability to successfully consummate the acquisitions we are pursuing. I anticipate updating our shareholders on at least a quarterly basis regarding our expectations."
About Modern Technology Corp.
Founded in 1982, Modern Technology Corp is a business development and acquisition company, building revenues by strategic acquisitions and subsequent market expansion. MOTG provides infrastructure, intellectual capital, strategic investments, and ongoing support and growth assistance to each company within its portfolio. MOTG provides mentoring and assistance through collective operations experience, significant industry contacts, and strategic and tactical advice. The company's mission is to consistently build shareholder equity through accretive acquisitions, to continue its history of stock and cash dividends, and to create and promote synergistic relationships among portfolio companies and affiliates. For more information, visit the company's web site at: http://www.moderntechnologycorp.com.
Modern Technology Corp. logo is available at: http://www.primezone.com/newsroom/prs/?pkgid=1479
Safe-Harbor Statement
This press release contains statements (such as projections regarding future performance) that are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those projected as a result of certain risks and uncertainties, including but not limited to those detailed from time to time in the Company's filings with the Securities and Exchange Commission.