SOURCE: Citadel EFT

Citadel EFT

February 19, 2013 11:00 ET

Citadel EFT, Inc. (CDFT) CEO Gary DeRoos Announces $257,000 USD Appraisal on the Villa in the Dominican Republic

OCEANSIDE, CA--(Marketwire - Feb 19, 2013) - Citadel EFT, Inc's. (OTCQB: CDFT) CEO Gary DeRoos reports that Citadel EFT, Inc. has received a complete appraisal on the Dominican Republic Villa property. Banco Popular was commissioned for this appraisal, as the original owners were preparing to mortgage the balance of the $75,000 USD owing on the property. The appraisal came out at about $257,000 USD, adjusted for exchange-rate variances between the Dominican Republic Peso and the US Dollar. The total equity, including improvements, in the property stands at $230,000 USD.

Upon completion of the Convertible C Preferred Placement (PREF C), Citadel will assume title of the property, and will be able to book that value to US SEC standard. The Villa's INCOME, once it goes into the rental pool, will be divided between the original owners and the PREF C Shareholders on a 66/34% split. The specific terms on the amount of PREF C exchanged for the Villa will be disclosed at the time of closing of this property. But, it is already assumed that the appraised value, plus management services are designed to enhance the overall value in the public company, and are included in the PREF C purchase.

Gary DeRoos, CEO of Citadel EFT, says, "The split is extremely fair to both parties, as the original owners have a 66% stake in the property, at present. Citadel EFT would retain title in the property, which, as an asset it can book on the balance sheet, and record the income, from the rental pool. This income revenue creates a monthly dividend to be paid by Citadel EFT to the PREF C shareholders of record. Conservatively, monthly income is expected to come in at about $7,000 USD per month, which takes into consideration peak and non-peak seasons. We would expect to have no more than 10 shareholders of record sharing in this dividend every month. The value to the original owners is a TAX advantage, as they receive their share of the rental income as a dividend through the same class of preferred."

He further states, "The final step now is to complete and close the placement for this PREF C. The limited amount of shareowners in the PREF C will not dilute the dividends they receive, once the Villa is furnished and rented. It must be noted that we have not assertively offered the PREF C to the common shareholders, because we thought it wise to wait for Citadel EFT's filing of its last US SEC FORM 10-Q. Now that is of public record, and the results are evident, we will finish this placement and close it."

Management plans on offering additional class of preferred shares to all interested parties and shareholders who might like to participate in the next opportunity.

Current shareholders of record can request from CDFT's management a copy of the Banco Popular appraisal.

About Citadel EFT, Inc:

Based in Oceanside, CA, Citadel EFT, Inc., provides credit card merchant account services to retailers, mail order companies and online service providers. The Company provides a free terminal to the business owner and charges no yearly fees, monthly minimums, statement, or address verification fees. Citadel markets its services directly and also through resellers, http://www.credit-card-processing.com.

FORWARD LOOKING STATEMENT

CDFT cautions that the statements made in this press release constitute forward-looking statements, and not guarantees of future performance and actual results or developments may differ materially from the projections in the forward-looking statements. Forward-looking statements are based on the estimates and opinions of management at the time the statements are made.

Contact Information

  • Contact:
    Gary DeRoos
    714-423-0701