Contact Information: Contact: James J. Mastriani Chief Financial Officer Velocity Portfolio Group, Inc. (732) 556-9090
Velocity Portfolio Group to Explore Strategic Alternatives
Company to Withdraw Registration Statement for Proposed Public Offering
| Source: Velocity Portfolio Group, Inc.
WALL, NJ--(Marketwire - February 27, 2009) - Velocity Portfolio Group, Inc. (NYSE Alternext US : PGV ) announced today that it is withdrawing its registration statement for
its proposed public offering of stock and warrants and that its board of
directors has authorized the company to begin a process of exploring
strategic alternatives to enhance stockholder value. To this end, the
board expects to form a special committee comprised of independent board
members which will assist management in this effort.
In making the announcement, Velocity stated that its board of directors has
not approved placing the company or any of its assets up for sale, and the
company does not have any commitments or agreements with respect to any
particular transaction. The company also stated that there can be no
assurance that the exploration of strategic alternatives will result in a
transaction. Subject to regulatory requirements, Velocity does not intend
to disclose developments with respect to the exploration of strategic
alternatives unless and until its board of directors has approved a
specific transaction.
John C. Kleinert, Chief Executive Officer of Velocity, stated "Given our
depressed stock price and the current public capital market conditions, we
have decided to forego our proposed public capital raise at this time and
are examining all options to create value for our stockholders. During the
exploration process, we expect to consider a full range of possible
alternatives, including a possible sale, merger, strategic partnership or
financing."
About Velocity Portfolio Group, Inc.
We are a portfolio management company that purchases unsecured consumer
receivables in the secondary market and seeks to collect those receivables
through an outsourced legal collection network. Our primary business is to
acquire credit-card receivable portfolios at significant discounts to the
total amounts owed by the debtors. We use our proprietary valuation process
to calculate the purchase price so that our estimated cash flow from such
portfolios offers us an adequate return on our investment after servicing
expenses.
For more information, visit www.velocitycollect.com
"Safe Harbor" statement under the Private Securities Litigation Reform Act
of 1995
Except for the historical information contained herein, this press release
and the statements of representatives and partners of Velocity Portfolio
Group, Inc. (the "Company") related thereto contain or may contain, among
other things, certain forward-looking statements, within the meaning of the
Private Securities Litigation Reform Act of 1995. Such forward-looking
statements involve significant risks and uncertainties. Such statements
may include, without limitation, statements with respect to the Company's
plans, objectives, projections, expectations and intentions and other
statements identified by words such as "projects", "may", "could", "would",
"should", "believes", "expects", "anticipates", "estimates", "intends",
"plans" or similar expressions. These statements are based upon the
current beliefs and expectations of the Company's management and are
subject to significant risks and uncertainties, including those detailed in
the Company's filings with the Securities and Exchange Commission. Actual
results may differ significantly from those set forth in the
forward-looking statements. These forward-looking statements involve
certain risks and uncertainties that are subject to change based on various
factors (many of which are beyond the Company's control).