MIAMI, April 30, 2009 (GLOBE NEWSWIRE) -- Omega Commercial Finance Corporation (Pink Sheets:OCFN) has released the following statement to its shareholders:
In keeping with our pledge to increase transparency and improve the effectiveness of communication with our investor community, we are initiating a series of periodic updates to help keep potential investors and shareholders informed about our Company's progress. The Board, management and staff of Omega Commercial Finance Corp. deeply appreciate your ongoing faith and support and want you to know that we are working hard to bring opportunities to this enterprise for sustainable, long term growth.
We have experienced a very challenging year filled with many failures from corporate America. However, the Omega management team firmly believes that the initiatives taken in 2008 and 2009 are the first of many strategic implementations that are currently being conducted, in order to build corporate and shareholder value. The company was able to take adversity and create opportunity by targeting undervalued opportunities that would not have not been available but for the downturn in the real estate sector and the economy. We were able to go from zero to .30 cents a share in book value and expect that number to increase with our year-end audited financial statement.
Listed below are a few material events that have transpired for the Company over the last several months:
* Change of Auditor - Most recently we announced that we engaged a
new auditor, Randall N. Drake CPA, PA. Mr. Drake has an extensive
background in the public and private arena including stints as
the Chief Financial Officer of a multi-million dollar
manufacturing company for over 10 years and the Marketing Analyst
for a Fortune 500 company, The Jim Walter Corporation. Because of
this recent change in auditors, we have experienced an
inadvertent delay with our year-end 10k filing. We had
anticipated the completion of the filing within the time allotted
by the filing of our extension in order for the Company to remain
a fully reporting bulletin board company. However, a discrepancy
as to the amount of extensions filed within the last 12 months
led to the technical delisting of the Company from the Bulletin
Board onto the Pink Sheets. This should not be construed as
anything more than an unfortunate punishment instituted by FINRA
to the Company and we sincerely apologize to our shareholders for
the unintentional delisting. The Company will continue to act as
a fully reporting company until such time that we can either
appeal or make application back to the Bulletin Board.
LOS CORALES RESORT PROJECT - February 11, 2009, we announced that we entered into a Definitive Agreement with BBB Developments Mexico and acquired 100% ownership of 3.9 acres of beachfront property located in Puerto Penasco, Mexico. A 3-phase plan has gone into effect with the development of this property turning it into a 298 unit high-rise hotel/condo beach resort located on prime beachfront property. The resort will boast full-scale amenities including luxurious landscaping, pools, Jacuzzis, spas, a beach club, restaurants, a private beach and private pier leading into the ocean. The resort will be comprised of both condos and a hotel meeting the demands of individuals looking to retire, have a second home, or come for a short term stay. Phase 1 has recently been completed and the Company is currently anticipating the initiation of Phase 2. Within the last several days the Company has received a pre-qualified commitment letter from Mexico's largest Bank BBVA Bancomer. This will help facilitate the funding of the project, as well as, provide loans to potential buyers of the resorts luxurious condos. The Company feels the timing of the commitment is perfect because they can now take advantage of certain opportunities with lowered labor and building material costs that the current economy has created. The Company also feels confident that a cyclical upturn with the economy will fall in line with the overall completion of the project. The overall valuation placed on this project upon completion is approximately $116,000,000.
STERLING MINES COMMERCIAL PROJECT - March 04, 2009, we announced the signing of a Definitive Agreement to acquire, through a share exchange agreement, the Sterling Mine commercial real estate project. The project is comprised of 30,654 sq. ft. of office and retail space located on 4.8 acres of prime real estate in Tuxedo Park, NY. The project is currently close to 75% complete and will be primarily comprised of retail space with optional adjoining office facilities. As of this date, Omega has been furnished with executed letters of intent that include 5-year occupancy terms by a local leasing agent. These agreements currently represent an occupancy rate of 84% upon completion of the project. The overall valuation of this project upon completion is approximately $7,500,000.
OMEGA ROYALE LUXURIOUS CASINO SHIP - July 28, 2008, we announced the signing of a Definitive Agreement to acquire a 100,000-sq.-ft. vessel that the Company anticipates refurbishing into a ultra luxurious resort style casino vessel equipped with a 49,000-sq.-ft. state-of-the-art casino that will include approximately 500 player tracking slot machines and 64 table games consisting of Baccarat, Black Jack, Craps and Roulette. The plush style casino will be spread over four decks, which will be connected via elevators and escalators. A complete Vegas Style Sports Book will afford gamblers the opportunity to wager 24 hours a day on various sport competitions. Resort style amenities such as multiple lounge venues, a Grand Show Room with headliner & production shows, expansive outdoor decks with several unique dining options will adhere to the wide range of gamblers the ship expects to draw. Special attention shall be paid to the ship's VIP facilities. The company anticipates including luxury suite accommodations, a VIP lounge, a world-class Asian spa, business conference facilities and retail boutique shops. At the time this acquisition was completed, management was not able to determine the depth or magnitude of the worldwide economic slump and its effect on the gaming industry. The ability to raise capital for this type of venture has also proved to be a challenging task with the overall sell off of the market and tightening of cash over the last several months. While the Company fully anticipates following through with its initiatives, we are also taking a careful approach in regards to the timing of entering into the casino ship gaming industry. The overall valuation placed upon this project upon completion is approximately $37,000,000.
Jon S. Cummings IV, CEO, stated, "We are excited about our future and remain dedicated to building a successful and sustainable business. We are also continuing to diversify our asset base with the goal of bringing various sources of revenue stream to the Company through the strategic implementation of extraordinary and undervalued acquisitions. Over the last several months we have taken bold steps toward achieving that goal, and also toward assuring you, our shareholders, of our absolute commitment to building a company that will increase in shareholder value."
Safe Harbor
This release contains statements that constitute 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. These statements appear in a number of places in this release and include all statements that are not statements of historical fact regarding the intent, belief or current expectations of Omega Commercial Finance Corp., its directors or its officers with respect to, among other things: (i) financing plans; (ii) trends affecting its financial condition or results of operations; (iii) growth strategy and operating strategy. The words "may," "would," "will," "expect," "estimate," "can," "believe," "potential" and similar expressions and variations thereof are intended to identify forward-looking statements. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, many of which are beyond Omega Commercial Finance Corp.'s ability to control, and that actual results may differ materially from those projected in the forward-looking statements as a result of various factors. More information about the potential factors that could affect the business and financial results is and will be included in Omega Commercial Finance Corp. filings with the Securities and Exchange Commission.