http://biz.yahoo.com/bw/080317/20080317005602.html?.v=1
Press Release Source: Seaway Valley Capital Corporation
Seaway Valley Capital Corporation Releases Update
Monday March 17, 8:00 am ET
NEW YORK--(BUSINESS WIRE)--Seaway Valley Capital Corporation (OTC Bulletin Board: SWVC - News) (“Seaway Valley”) chairman and chief executive officer, Thomas W. Scozzafava, issued the following update to its shareholders today:
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Dear Shareholders:
We are pleased to announce the final closing of and funding from the previously announced Wells Fargo inventory-based line of credit (the “Wells Fargo LOC”) at our wholly owned subsidiary, Patrick Hackett Hardware Company (“Hackett’s”). Hackett’s expects to immediately draw down approximately $2 million of the $5 million facility leaving excess capacity of around $3 million, which should be sufficient to fund Hackett’s working capital needs through 2008. Also in conjunction with that financing, YA Global Investments, L.P. acquired Hackett’s legacy indebtedness previously owed to Community Bank, NA. If not acquired, the Community Bank debt of approximately $2.25 million would have to have been repaid with the proceeds of the Wells Fargo LOC, thereby significantly reducing Hackett’s excess availability of that line. The acquisition of this debt was strategic in that Hackett’s can now utilize a much larger portion of the Wells Fargo LOC for asset acquisitions and store expansions.
In the following months, we expect Hackett’s to transition each former WiseBuys store as well as acquire at least two other regional retailers. Additionally, we expect Hackett’s to finalize at least one new store opening. In summary, Seaway Valley will continue to financially and operationally support Hackett’s, whether through company or asset acquisitions or general expansion.
Seaway Valley also continues to seek other acquisitions and investments, and we expect to finalize a material acquisition in the coming days. Recently Seaway Valley announced that it executed a term sheet and is in final negotiations to acquire a regional hospitality and consumer products company with recent revenues and assets of approximately $5 million and $13 million, respectively. The consumer products company, based in Upstate New York region, would bring tremendous opportunities for cross selling and promotional efforts among and between these geographically clustered assets. Additionally, certain of these assets represent a tremendous platform that Seaway can immediately assist in positioning for growth inside and outside the region – both organically and through additional acquisitions.
I am pleased to be able to update you on these events, and I shall continue to update you with further developments.
About Seaway Valley Capital Corporation
Seaway Valley Capital Corporation was formed in 2002 and makes equity, equity-related, and debt investments in companies that require expansion capital and in companies pursuing acquisition strategies. Seaway also seeks investments in leveraged buyouts and restructurings. Seaway will consider investment opportunities in a number of different industries, including retail, restaurants, media, business services, and manufacturing, and Seaway will also consider select technology investments.
About Patrick Hackett Hardware Company
Hackett’s, one of the nation’s oldest retailers with roots dating back to 1830, is a full line department store specializing in name brand merchandise and full service hardware. Hackett’s, now with nine locations, features brand name clothing for men, women, and children, and a large selection of athletic, casual, and work footwear. Hackett’s also carries domestics, home décor, gifts, seasonal merchandise and sporting goods. Hackett’s full service hardware department features traditional hardware, tool, plumbing, paint and electrical departments.
Safe Harbor Statement
This press release contains statements that may constitute "forward-looking statements" within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995. Those statements include statements regarding the intent, belief or current expectations of the Company, and members of their management as well as the assumptions on which such statements are based. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those contemplated by such forward-looking statements. Important factors currently known to management that could cause actual results to differ materially from those in forward-statements include fluctuation of operating results, the ability to compete successfully and the ability to complete before-mentioned transactions. The company undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results.
Contact:
Seaway Valley Capital Corporation
contact@seawaycapital.com
www.seawaycapital.com
or
Investor Relations:
CEOcast, Inc.
Gary Nash, 212-732-4300
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