CEDARHURST, N.Y., April 20, 2005 (PRIMEZONE) -- Consumers Financial Corporation (Pink Sheets:CFIN) ("CFIN") today announced the completion of its acquisition of Ontario Pay Day Service, Inc. ("OPDS" or Ontario Pay Day) of Ottawa, Ontario, Canada.
Jack I. Ehrenhaus, Chairman of the Board stated, "Ontario Pay Day is a remarkable company that is run by an extremely talented management, Michael Buchanan. It has a brief history, as a private company with profit margins in excess of 50%. We have bought the rights to the name and the software and believe that, under our banner, OPDS can expand rapidly into other markets."
OPDS began operations in June 2004 and finished the year with 17 locations. The company makes cash advances to employees where the repayment comes directly from the next paycheck as a deduction not unlike tax withholdings. The transaction involves the issuance of 650,000 shares of CFIN stock to the owner of OPDS. Additional shares will be awarded upon the achievement of revenue and earnings thresholds over the initial two years of operation under the CFIN umbrella.
Mr. Ehrenhaus further stated, "While the lending rates OPDS charges are higher than those available in the U.S., the lending strategy is so imaginative that expansion into the U.S., even though margins will be narrower, is envisioned to begin with two years. The operation can be a significant moneymaker for CFIN. The key to OPDS is the ability to reduce the lending risk while accommodating rated customers."
Consumers Financial Corporation is a diversified merchant banking and financial services company dedicated to finding and assessing the value of microcap companies strategically located in markets where significant growth and profits can be obtained. CFIN targets companies where management is exceptional, products are proprietary, techniques, software or technology provide some measure of exclusivity, where profit margins are above average and where these companies can benefit from CFIN's financial assistance either through equity or credit facilities. The Company trades under the symbol CFIN and can be found on the Over the Counter Pink Sheets.
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.