HOUSTON, Jan. 31, 2006 (PRIMEZONE) -- Emerge Capital Corp. (OTCBB:EMGC) announced today that its wholly owned operating subsidiary Corporate Strategies, Inc. has purchased approximately seventy percent (70%) of the outstanding common stock of Sagamore Holdings, Inc.
Sagamore Holdings' primary asset is its operating subsidiary, Nexus Custom Electronics, Inc. Nexus is a 38-year-old custom circuit board and prototype manufacturer located in Woburn, Massachusetts and Brandon, Vermont.
Tim Connolly, CEO of Emerge Capital Corp., commented: "Nexus is a well-known brand in New England markets, and has a capable, well-educated and experienced work force. Competitive pressure from Chinese manufacturers has dramatically reduced gross sales from $30,000,000 annually two years ago, and we believe that the Nexus current negative operating condition can be turned around. We are bringing restructuring expertise and turnaround management to refine manufacturing techniques, improve delivery times to customers, and identify new markets with the margins necessary to support Nexus as a viable, continuing enterprise."
Emerge Capital Corp. provides Business Restructuring, Turnaround Management, and Advisory Services for emerging and re-emerging public and private companies through its wholly owned operating subsidiary, Corporate Strategies, Inc. (CSI). CSI helps micro-cap public companies accelerate growth and provides working capital, management restructuring and turnaround expertise, and in select cases, makes direct investments in our client companies. CSI markets its turnaround services to hedge funds, institutional investors, and banks that have significant exposure in troubled micro-cap public companies. Typically, these companies are in operational or financial difficulty, may be in default of lending or equity agreements, and may be facing bankruptcy or liquidation if their operations are not turned around. CSI is compensated with cash payments on a monthly or quarterly basis, and the most significant part of our compensation is in outright grants of equity in the form of common stock, and/or warrants for purchasing common stock. We believe this compensation plan aligns our interests with the client company and its shareholders because our ultimate compensation is determined by successfully increasing shareholder value. This performance based arrangement clearly demonstrates that our interests are consistent with the goals of our clients, their shareholders, and the shareholders of Emerge Capital Corp.
All statements included in this press release, other than statements of historical fact, are forward-looking statements. Although Management believes that the expectations reflected in these forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. Important factors could cause actual results to differ materially from the expectations that are disclosed in this Press Release. While Emerge Capital Corp/Corporate Strategies, Inc. believes its forecasting assumptions are reasonable, there are factors that are hard to predict and influenced by economic and other conditions that are beyond Emerge Capital Corp/Corporate Strategies, Inc.'s control. Among the other important factors which could cause actual results to differ materially from those in the forward-looking statements are detailed in Emerge Capital Corp/Corporate Strategies, Inc.'s filings with the Securities and Exchange Commission.