STAMFORD, Conn., June 3, 2002 (PRIMEZONE) -- Precom Technology, Inc. (OTCBB:PMMT) announced today that it has acquired the equipment leasing business of Saddleback Financial Corp, based in Orange CA. Saddleback has been engaged in the equipment leasing business since 1983. The acquisition was an all stock transaction, with two million shares of common stock, at an agreed valuation of $1.00 per share for purposes of the exchange, and one million shares of preferred stock of Precom issued to Saddleback at closing in exchange for all of the assets of Saddleback, including fixed assets, work in process, contracts, the Saddleback name and all other operating assets. The existing business acquired by Precom will be operated through a new subsidiary of Precom, Saddleback Finance, Inc., which has been formed to continue the business.
The preferred stock will be issued subject to conversion into additional common shares in one year such that the common shares issued on the conversion have a value of $2.5 million, based on the market closing price at that time. Precom has an option to cancel the transaction during the same one-year period if Saddleback's quarterly financial performance is not at least 95% of the projected performance on which the acquisition was based.
Robert Hipple, CEO of Precom said: "This acquisition fits perfectly with our overall corporate direction of providing a broad suite of financial services to our identified client base, made up of a large number of entrepreneurs and their companies, with a wide variety of financial needs. Precom, doing business as Concilium Group, currently provides financial planning, tax planning, merchant banking, private banking, and business consulting services to this client base and now is able to include equipment leasing in our available financial services and products. Saddleback Financial is a well-respected equipment leasing company with a twenty-year track record in the industry and an excellent management staff, all of whom will remain after the acquisition of the business."
Philip Walden, CEO of Saddleback who will continue in that position with the new Saddleback Finance, added: "This acquisition by Precom will offer Saddleback the opportunity to expand its client base and its total business activities. We look forward to the association with Precom and its growing financial services business."
The information in this Press Release includes certain "forward-looking" statements within the meaning of the Safe Harbor provisions of Federal Securities Laws. Investors are cautioned that such statements are based upon assumptions that in the future may prove not to have been accurate and are subject to significant risks and uncertainties, including the future financial performance of the Company. Although the Company believes that the expectations reflected in its forward-looking statements are reasonable, it can give no assurance that such expectations or any of its forward-looking statements will provide to be correct. Factors that could cause results to differ include, but are not limited to successful performances of internal plans, the impact of competitors, and general economic risks and uncertainties.