TORONTO, March 29, 2006 (PRIMEZONE) -- Reliant Home Warranty Corp. (OTCBB:RHWC) announces issuance of letter to shareholders:
Dear Shareholders:
Reliant is experiencing many positive changes. We have entered a tremendous growth period in our company's short history. Our business plan has been to develop partnerships with well-respected companies and engage them to distribute our suite of products. During the second quarter of this year you will begin to see the fruits of our labors. We set lofty goals for our company -- $750,000,000 in revenue for our first year. Our revenue is derived from issuing the highest quality mortgages in Canada (and soon the United States). The mortgages are pre-sold to our network of investors.
We are committed to staying focused and increasing shareholder value. These two elements will position the company to achieve beneficial results in the upcoming quarters. We realize we have a long road to travel, but we are well on our way to being viewed as the industry leader. Major revenue growth will occur in upcoming quarters, which will only add to a strong bottom line in the years ahead and reinforce our position.
Our goal is to grow and provide world-class service to our client base. The mortgage brokers who sell our products and the consumers who purchase have the satisfaction of knowing our mortgages come with a six-month job loss protection guarantee (something no other mortgage offers). In Canada, purchasing a new home requires 25% down. We offer up to 100% financing and up to 95% for non-prime borrowers.
We know our goals are aggressive, but we are confident in our ability to achieve success. Consumers and Brokers wanted more options when choosing mortgages and they wanted the ability to achieve ownership of their future. Our suite of products provides both the ability to exceed client expectations and give them a low cost solution.
We will continue keeping our investors and shareholders informed on a consistent basis we feel will only enhance and maximize shareholder wealth. Reliant has accomplished the following over the last year:
-- Mortgage Brokers Network of over 5,000 agents to sell our
mortgage products.
-- Negotiation and finalization of a mortgage credit line is
expected by the end of April for our spring launch.
-- Brit Insurance (our reinsurer and underwriting/risk management
mentor) has finalized the actuarial framework necessary to ensure
success of their North American efforts.
-- Dundee Securities continues to pursue and finalize our debt
syndication.
-- The retail mortgage marketing program has been structured, staffed
and is ready to commence operation.
-- Our proprietary real time web based mortgage servicing and
origination platform has been developed and currently is being
tested and will be ready for the spring launch.
-- Our advertising and promotional web based and television spots
are being completed and will be ready by April 15th to be viewed
on our website.
-- Reliant's Barbadian insurance subsidiary is in the final stages
of obtaining regulatory approval to operate.
-- Lastly, the North American public markets and financial press have
eagerly accepted the company's publicly traded shares making
Reliant a much sought after investment.
We are confident Reliant will make its goals of booking and selling over $750,000,000 dollars of Canada's first true sub-prime mortgages within the next year.
In closing, I would personally like to thank every client, employee, and shareholder for continued support and growth in our shared successes. The quality of service has been outstanding and I am confident shareholders will reap rewards over the long-term.
Yours very truly, Boyd Soussana President and CEO