SOURCE: First Guardian Financial

May 03, 2007 10:35 ET

First Guardian Financial Corporation Announces Joint Venture & Financing Agreement With Advanced Machine Group (AMG)

NEW YORK, NY -- (MARKET WIRE) -- May 3, 2007 -- First Guardian Financial Corporation (PINKSHEETS: FGFC) today announced that they have reached a Joint Venture/Financing Agreement with Advanced Machine Group (AMG). AMG is in the process of finalizing a certain number of Marketing and Distribution Agreements with a Major International Firm for the Worldwide Marketing and Distribution of its Vertical Lathes and CNC Machines.

The North American Market has seen a significant increase in the demand for the machining of large metal parts for various New Technologies Industries, as well as existing Technologies which are in demand for large machining parts such as: Nuclear Power Plant Equipment; Wind Power Facilities; Renewable Energy Technology; Oil and Gas Facilities; Power Plants; Transportation Industry; Material Handling; Chemical Technologies; etc.

FGFC Joint Venture Agreement with AMG calls for Capital Financing in two stages to AMG with the Funding to be utilized for New Orders that are in the Purchase/Bidding and Negotiation Process in the Heavy Industry and Manufacturing Sectors.

1) Round 1 of Capital Financing will be between $500,000.00 to $750,000.00 in the next 30 to 60 days upon AMG executing certain Purchase Orders that are already in the process and being finalized. AMG has already expended time, effort and Fiscal Resources to bring these Purchase Orders to finalization. The Executed Purchase Orders will also allow AMG the Funding to fulfill the Orders. The cost of Capital will be factored into the Cost of all products manufactured and will still yield significant Profit Margins for AMG and FGFC.

2) Round 2 of Capital Financing will occur upon completed Purchase Orders and will be for $1,000,000.00 to $1,600,000.00 over a 60 to 120 day period.

The Total Investment/Financing of Funds over a one year period from FGFC starting June 1, 2007, which is the expected date of first Installment of Capital Financing, is not expected to exceed $2,500,000.00.

All use of Capital Investment provided by FGFC will be audited by a recognized Accounting Firm. In exchange for the Capital Investment/Financing by FGFC a Joint Venture Agreement has been negotiated with AMG whereby FGFC will participate in Joint Ownership of AMG by having Shares in AMG reflecting a Twenty Five Percent (25%) Equity Position. The FGFC investment will grow as AMG develops additional contracts going forward, by bringing the Network of FGFC in to help develop and finance Business for AMG. FGFC will participate in the significant Upside potential of this Investment with Minimal Risks. The FGFC Agreement with AMG also calls for additional Fees paid to FGFC for Business Development Services and other Financing Services and providing additional Financing for AMG against Firm Purchase Orders.

Mr. Fauzie Mohamed, President, FGFC, stated, "This is an opportunity for the Company to enter a very lucrative industry with minimum Capital Investment, with a significant upside potential. I am very pleased with our ability to negotiate this Joint Venture and look forward to a very profitable venture."

ABOUT FIRST GUARDIAN FINANCIAL CORPORATION:

FGFC invests its own capital or arranges capital financing in certain industries with high growth potential; the company derives revenues from interest on Funds invested, Professional Fees and Equity Positions from the Companies it invests in.

This press release does not constitute an offer of any securities for sale. This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements involve certain risks and uncertainties that could cause actual results to differ, including, without limitation, the company's limited operating history and history of losses, the inability to successfully obtain further funding, the inability to raise capital on terms acceptable to the company, the inability to compete effectively in the marketplace, the inability to complete the proposed acquisition and such other risks that could cause the actual results to differ materially from those contained in the company's projections or forward-looking statements. All forward-looking statements in this press release are based on information available to the company as of the date hereof, and the company undertakes no obligation to update forward-looking statements to reflect events or circumstances occurring after the date of this press release.

Contact Information

  • CONTACT:
    First Guardian Financial Corporation
    Investor Relations
    1-212-363-6342
    1-212-363-4333
    Fax: 1-212-658-9539