SOURCE: CorpHQ, Inc.

January 16, 2007 09:45 ET

CorpHQ to Move Forward by Streamlining Operations and Refocusing on Core Strategy

REDONDO BEACH, CA -- (MARKET WIRE) -- January 16, 2007 -- CorpHQ, Inc. (PINKSHEETS: COHQ) today announced that it will continue operations while making sweeping changes to its business strategy and management team.

Recent "Speculative Buy" coverage by Investrend Research has placed CorpHQ at a crossroads between going private and continuing as a public company. While management and the board of directors have evaluated various merger opportunities, none would have brought a premium to current market value. As such, management believes continuing operations has the potential to bring greater value to shareholders than other alternatives currently available to the Company.

Management is now incorporating the following elements into CorpHQ's 2007 operations.

1. Strategy. CorpHQ has discontinued its practice of accepting stock as compensation for its services. Management will now focus on generating cashflow from the core strategy of providing business management services to high potential organizations. The Company will continue to accept forms of equity as incentives or bonuses, but will recognize the value of these instruments only upon liquidation.

2. Management. The Company has promoted former Executive VP Gregg Davis to the position of President. Co-founder Steve Crane has agreed to continue to serve the company as Chief Executive Officer. Each has agreed to accept $1 in annual salary and substantial incentive-based compensation. The Company has not extended employment agreements to any other individual.

3. G&A Expenses. In light of the above factors, management has reduced the Company's monthly overhead expenses to approximately $8,000 from over $50,000 in 2006.

4. Investments. As previously disclosed, the Company's large investment in Stronghold Industries Inc. has been written down to allow more flexibility while the company seeks a buyer or buyers for a portion of these holdings.

CEO Steve Crane said, "We have cut our operating costs to the bone and because of this we must regretfully say good-bye to four of our most loyal and trusted colleagues. We have also attempted to reduce the risk in our business model while attempting to maintain the 'home-run' potential that comes from working with early stage companies."

Gregg Davis, CorpHQ's newly elected President, said, "We put together five great years in a row from 2001-2005. Our performance suffered in 2006 due to scale-related issues. We accepted restricted stock as payment from two companies, while continuing to loan funds to another because of delays in its public listing and just hit the wall. But, we have felt all along that we could overcome this situation. Today we are taking the first of several strong steps in getting CorpHQ back on track. We have exciting opportunities ahead of us and are looking forward to 2007."

More detailed information has been released in a Voluntary Notice of a Material Event which can be read in its entirety today at

Forward-Looking Statements

Any statements made in this press release that are not based on historical facts are "forward-looking statements," as such term is defined in the Private Litigation Reform Act of 1995. Although such statements are based on management's current estimates and expectations, and currently available competitive, financial, and economic data; forward-looking statements are inherently uncertain. We, therefore, caution the reader that there are a variety of factors that could cause business conditions and results to differ materially from what is contained in our forward-looking statements. For a description of some of the factors which may occur that could cause actual results to differ from our forward-looking statements please refer to our 2005 Voluntary Annual Report and subsequent Voluntary Quarterly Reports, and in particular the discussions contained under "Risk Factors."

Contact Information

  • For more information please contact:
    CorpHQ, Inc.
    Gregg Davis
    (310) 683-0404
    Email Contact