PHILADELPHIA, Dec. 27, 2005 (PRIMEZONE) -- Radiant Logistics, Inc. (OTCBB:RLGT), a development stage company formed to build a global transportation and supply chain management company, today announced that it has completed a private placement of its common stock for gross proceeds of approximately $4.4 million.
The offering consisted of the sale of approximately 10.0 million shares of the Company's common stock at a price of $0.44 per share. The Company plans to use the proceeds from the offering to fund its acquisition strategy and for other general corporate purposes.
"This is a key milestone in our plans to build a global logistics enterprise at Radiant and we look forward to the journey ahead," said Bohn Crain, the Company's Chief Executive Officer. "We expect that this $4.4 million along with the $1.0 million of equity we raised in October of this year will be combined with bank debt to complete a planned initial platform acquisition and position us for future growth."
"We intend to build a leading global transportation and supply chain management company through the strategic acquisition of regional best-of-breed non-asset based transportation and logistics service providers, and to offer our customers an expanding array of global supply chain services. We intend to achieve this objective by completing an initial platform acquisition and then expanding its geographic presence and service offerings through a combination of synergistic acquisitions and the organic expansion of its base of logistics operations. With a focus on integration and organic growth we believe that our (1) consolidation strategy, (2) expected access to growth capital to pursue additional profitable companies, and (3) the additional value-added logistics services that we will organize around our core freight forwarding capabilities, will provide us with competitive advantages as an emerging global logistics services organization. These initiatives will fuel our continued growth through a combination of acquisition and organic expansion and allow us to create value for our customers, our employees and ultimately our shareholders."
Targeted Platform Acquisition and Initial Funding
Radiant has entered into a letter of intent to acquire its initial platform company which provides domestic and international freight forwarding services to a diversified account base of over 6,000 customers including manufacturers, distributors and retailers using a network of over 3,000 independent carriers and over 100 international agents positioned strategically around the world. Based upon audited financial statement provided to Radiant in connection with its due diligence efforts, for the fiscal year ended June 30, 2005, the platform company realized normalized income from continuing operations of approximately $2.2 million on gross revenues of approximately $51.5 million.
Pursuant to the letter of intent, Radiant agreed to acquire its platform company in a transaction valued up to $14.0 million, consisting of $10.0 million payable in cash at closing, with the balance due in subsequent annual installments, certain of which are subject to earn-out obligations. Radiant expects to fund the cash payable at closing through a combination of its completed equity financings of approximately $5.0 million, cash within the targeted platform acquisition and a senior debt facility which is in process, subject to completion. Subject to its confirmatory due diligence and securing adequate debt financing, Radiant expects to close the transaction not later than the first quarter of 2006.
About Radiant Logistics (OTCBB:RLGT)
Radiant Logistics (www.radiant-logistics.com) expects to build a global transportation and supply chain management company through the strategic acquisition of regional best-of-breed non-asset based transportation and logistics service providers to offer its customers an expanding array of global supply chain services including time definite transportation and distribution solutions and a broad range of value added supply chain management services. For more information about Radiant Logistics, please contact Bohn Crain at (215) 545-2863.
This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, regarding future operating performance, events, trends and plans. We have based these forward-looking statements on our current expectations and projections about future events. In connection with our proposed platform acquisition, we have made certain assumptions that, if not realized, could cause actual results or events to differ materially from our expectations These forward-looking statements are not guarantees and are subject to known and unknown risks, uncertainties and assumptions about us that may that may cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. While it is impossible to identify all of the factors that may cause our actual operating performance, events, trends or plans to differ materially from those set forth in such forward-looking statements, such factors that might cause or contribute to such a material difference include, but are not limited to: (i) our ability to complete the pending acquisition on terms similar to those set forth in the letter of intent or otherwise, with the recognition that closing is subject to customary closing conditions, certain of which may be beyond our control; (ii) our ability to secure the necessary level of financing to complete the acquisition, whether on terms we believe are commercially reasonable, or otherwise; (iii) our expectation that we will be able to secure proceeds from a debt facility that will facilitate our ability to complete our planned acquisition, although the facility has not yet been finalized; (iv) our assumption that the post closing level of operations of the platform company will be consistent with its level of historic operations; (v) our belief that the transaction will constitute a platform acquisition under our business strategy; and (vi) other factors that have been or may be disclosed in our periodic reports and other filings with the Securities and Exchange Commission, as well as other public documents and press releases which can be found on our web site (www.radiant-logistics.com). We undertake no obligation to publicly release the result of any revision of these forward-looking statements to reflect events or circumstances after the date they are made or to reflect the occurrence of unanticipated events.