SACKETS HARBOR, N.Y., April 19, 2010 (GLOBE NEWSWIRE) -- Seaway Valley Capital Corporation (Pink Sheets:SEVA), a diversified holding company with holdings in Harbor Brewing Company, Inc. (Pink Sheets:HBWO) and Hackett's Stores, Inc. (Pink Sheets:HCKI), announced today that it has executed a term sheet with ACG Consulting, LLC ("ACG") for the purposes of developing the employment-based EB-5 visa program administered by the United States Citizenship and Immigration Services ("USCIS") under the Immigration Act of 1990 (the "EB-5 Program"). Detailed information on the EB-5 Program can be found on the USCIS website at www.uscis.gov.
In summary, the EB-5 Program allows foreign nationals living outside the United States to invest in businesses in the United States, and if as a result of said investment a certain number of new jobs are created and maintained, the foreign national has the right to receive a U.S. visa. To this end, geographic centers called "Regional Centers" are created to manage and oversee the projects in which funds are invested.
The proposed deal would allow Seaway Valley to take a 49% interest in the Regional Center, which as currently proposed would cover New York, Massachusetts, Connecticut, Vermont, New Hampshire and Maine. More importantly, the transaction would include an initial capital raise of $30 million for certain holdings in Seaway Valley. As currently proposed, the capital raise itself would not be dilutive to the common shareholders of Seaway Valley, Hackett's Stores, Inc., or Harbor Brewing Company.
"Seaway Valley has been exploring the formation of a Regional Center and related capital raise for over fourteen months, and partnering with ACG Consulting will help us accomplish this goal," stated Chairman and CEO Thomas Scozzafava. "ACG's expertise in this field and global capital network are key to accomplish both the formation of the Regional Center and subsequent capital raise. Since the minimum foreign investment per individual is $500,000, a raise of $30 million would represent only sixty foreign investors." Mr. Scozzafava continued, "On our trip to China we saw tremendous interest in this program, and ACG has independently been developing an overseas infrastructure to promote these investment vehicles. The benefit to the Company and to the United States is increased access to low cost capital and permanent job growth, respectively."
As proposed, the Regional Center would provide funding projects in Hackett's Stores, Inc., which would include Patrick Hackett and certain new retail concepts, in the amount of $10,000,000, and Harbor Brewing Company, Inc., which would include brewing and baking operations and new restaurant concepts in the aggregate amount of $20,000,000. The capital would be used directly at the operating companies and could be used for both growth and debt reduction.
ACG Consulting is affiliated with ACG Companies (www.acgcompanies.com) and possesses specialized expertise in the employment based EB-5 Program. It develops and provides economic research and consultation services to clients nationally and is currently working with a number of clients who in the aggregate are seeking to raise more than a billion dollars in capital from foreign investors.
About Seaway Valley Capital Corporation:
Seaway Valley Capital Corporation makes equity, equity-related, and debt investments in companies that require expansion capital. Seaway also seeks investments in leveraged buyouts and restructurings. Seaway will consider investment opportunities in a number of different industries, including retail, restaurants, consumer products, media, business services, manufacturing, and select technologies.