Contact Information: Company Contact: Rick Johnston Director of Shareholder Communications Ph: 760-668-1274 Email: Rick@usdrycleaning.com www.usdrycleaning.com Investor Relations: Stanley Wunderlich CEO Consulting for Strategic Growth I Tel: 1-800-625-2236 Fax: 1-212-337-8089 Email: info@CFSG1.com Web site: www.cfsg1.com Media Relations: Daniel Stepanek CFSG1 Tel: 1-212-896-1202 Fax: 1-212-697-0910 Email: dstepanek@cfsg1.com
U.S. Dry Cleaning Closes on $4 Million of a Total $7.5 Million Initial Public Offering to Advance First Consolidation Program in the Industry
| Source: U.S. Dry Cleaning Corporation
PALM SPRINGS, CA--(Marketwire - June 12, 2007) - U.S. Dry Cleaning Corporation ("USDC"), a
first mover in consolidating the U.S. dry cleaning industry, announced
today that it has closed on $4 million of a maximum $7.5 million initial
public offering. The money will be used to advance USDC's plan to be the
first major consolidator of leading dry cleaning businesses nationwide.
The underwriter for the offering is US EURO Securities, Inc., a private
global investment bank headquartered in Florida.
USDC's total public offering comprises 3,000,000 units. Each unit is
priced at $2.50 and consists of one share of common stock and one
redeemable warrant to purchase one share of common stock.
Robert Y. Lee, CEO, Director and co-founder of USDC, said, "We are very
excited to offer the first IPO and become the first national consolidator
in the dry cleaning industry. As a growing operator, we seek to create
value through economies of scale, best practices, access to capital markets
and introduction of management experience not typically seen in the
industry. These funds will help us to rapidly advance our plan to become a
dominant force in a previously fragmented sector."
Michael Roy Fugler, Chairman of US EURO Securities, stated, "We are very
pleased to help USDC implement its consolidation of the U.S. dry cleaning
industry. Since December 2005, USDC has acquired three dry cleaning
businesses in California and Hawaii. This financing launches USDC's larger
business plan to acquire high-quality operations in strategic geographic
regions of the U.S."
About U.S. Dry Cleaning Corporation
U.S. Dry Cleaning Corporation is a classic, fundamental, early-stage
consolidator. On December 30, 2005, USDC merged with a public corporation
to become the first public operator of dry cleaning stores in America.
Over the last year and half, USDC has completed acquisitions in Hawaii and
California with combined annual revenues of over $9 million. USDC combines
a management team with extensive experience in retail consolidations and
dry cleaning operations, with a proven operating model.
USDC intends to rapidly acquire profitable, positive cash flow operations
at accretive valuations. Each acquisition target is expected to be
self-sufficient and senior management is expected to remain in place to
ease the assimilation. USDC is focused on acquiring businesses that hold a
leading share in their individual markets.
USDC management believes that the current absence of extensive competition
to acquire the larger dominant operators will change radically as the
industry consolidates. Management believes that the greatest value achieved
in any consolidation occurs during the earliest phases and intends to grow
as rapidly as possible.
This release is provided for informational purposes only and should not be
construed as a solicitation to invest. U.S. Dry Cleaning Corporation's
future operation results are dependent upon many factors, including but not
limited to: (i) the Company's ability to obtain sufficient capital or a
strategic business arrangement to fund its expansion plans; (ii) the
Company's ability to build the management and human resources and
infrastructure necessary to support the growth of its business; (iii)
competitive factors and developments beyond the Company's control; and (iv)
other risk factors discussed in the Company's periodic filings with the
Securities and Exchange Commission, which are available for review at
http://www.sec.gov under "Search for Company Filings."
In accordance with a December 5, 2006 agreement, Consulting For Strategic
Growth 1, Ltd. ("CFSG1") provides U.S. Dry Cleaning Corporation ("the
Company") with consulting, business advisory, investor relations, public
relations and corporate development services. CFSG1 receives only
restricted stock as compensation from the Company. CFSG1 may also choose to
purchase the Company's common stock and thereafter liquidate those
securities at any time it deems appropriate to do so. For more
information please visit www.cfsg1.com.