SOURCE: Equus Resources, Inc.

September 20, 2006 08:30 ET

Equus Resources Acquires Florida Realty Operation, Unwinds Wealthcare Transaction and Proceeds With Education Spin-Off Plans

ATLANTA, GA -- (MARKET WIRE) -- September 20, 2006 -- Equus Resources, Inc. (PINKSHEETS: EQUR) ("Equus" or the "Company") announced today that A-Bonus Realty Group has now become an operating division of Equus. A-Bonus is a 12-year-old real estate broker with principal offices in Jacksonville and St. Augustine, Florida and Waycross, Georgia. Last year, A-Bonus closed just under 100 home sales and this year it has closed 50, with the average transaction price ranging from $250,000 to $350,000. A-Bonus has 11 agents and is affiliated with Boney & Johnson Appraisers, whose staff of 17 Certified Residential Real Estate Appraisers has been appraising homes in North East Florida for the past 20 years. A-Bonus is owned and managed by Walter Boney, Keith Bailey and Tim Johnson, who collectively have more than 50 years' experience in the residential real estate industry. Keith Bailey, a licensed real estate broker in Florida and Georgia and a Certified Real Estate Appraiser in Florida, will also take over management of the Company's real estate brokerage operations in Georgia.

In other news, Equus has executed an agreement with Wealthcare Solutions and Core Development Services to cancel and unwind the acquisition agreement announced on May 30, 2006. This unwind agreement was necessitated, in the Company's view, by the failure on the part of Wealthcare and Core to make available to Equus a $2 million revolving line of credit, a fundamental provision of the original acquisition agreement. As a result of the unwind agreement, Jay Nauta is no longer serving as CEO of Equus and Drew Thorpe is no longer serving as CFO. Bert Watson has been renamed the Company's CEO and Jennifer Trastelis has been renamed CFO.

In still other news, the Company announced that it is proceeding with its plans to spin-off its education operations into a separate trading company, as previously announced on July 12, 2006. The Company is currently in negotiations with a major provider of education products and services to teachers and students to become a significant part of the new education entity. More information regarding the progress of the proposed spin-off and the negotiations will be released as developments unfold.

In making this announcement, Bert Watson, Equus CEO, commented: "The addition of A-Bonus will greatly enhance our real estate business and should also create additional mortgage business. As for Wealthcare, we had looked forward to a long and prosperous relationship, but we simply could not proceed when they defaulted on the line of credit commitment, which we deemed absolutely essential for us to properly streamline the combined operations and achieve the agreed upon growth targets. As for the spin-off, we believe we can complete it by year-end and we continue to believe that it will create significant added value for our shareholders."

About Equus

Equus is a diversified financial and education services company offering its clients a broad range of real estate, financial and education services, mainly in Georgia and Florida. Equus plans to expand its core businesses and areas of operation through internal growth and acquisitions and to add related lines of business as demand dictates. Our principal offices are in Atlanta and Jacksonville. For more information, please visit us at

Forward-Looking Statements:

Any statements made in this press release which are not historical facts contain certain "forward-looking statements," as such term is defined in the Private Litigation Reform Act of 1995, concerning potential developments affecting the business, prospects, financial condition and other aspects of the Company to which this release pertains. The actual results of the specific items described in this release, and the Company's operations generally, may differ materially from what is projected in such forward-looking statements. Although such statements are based upon the best judgment of management of the Company as of the date of this release, significant deviations in magnitude, timing and other factors may result from business risks and uncertainties, including, without limitation, the Company's dependence on third parties, general market and economic conditions, technical factors, the availability of outside capital, the receipt of revenues, and other factors, many of which are beyond the control of the Company.

Contact Information

  • Contact:
    Randy Harris
    (888) 421-8326
    (770) 442-2364