ERIE, PA--(Marketwired - May 1, 2014) - Fortitude Group, Inc. (OTC: FRTD) announced today that the company has completed the acquisition of a prominent financial Internet property with over 1,600,000 qualified opt-in members.
Under the terms of the agreement, the name of the acquired financial site will not be disclosed until the domain has been successfully transferred to Fortitude. This transfer is normally concluded in 2-4 weeks. Fortitude has acquired 100% interest in the website, including the domain and associated trademarks as well as the front-end website, the middleware data and the back-end database management software.
According to the acquisition agreement, since its inception, the acquired domain has amassed over 1,600,000 opt-in members, of which over 300,000 are active micro-cap investors and just under 400,000 are accredited investors. Consideration for this acquisition was 25 million restricted shares of Fortitude common stock issued under Rule 144.
According to the 2014 case study prepared by Subscription Site Insider (CLICK HERE) entitled "Email List Valuations: What's Your Opt-In Email List Worth as a Media Property on the M&A Marketplace Today?" the author provides valuations on specific opt-in data ranging from between $1 - $35 per name depending on eight key factors. Based on these 8 factors, the acquired domains membership database would be valued at the higher end of the spectrum and should be valued between $20 and $25 per opt-in name.
Thomas J. Parilla, CEO of Fortitude stated, "With the addition of this well-known financial website to our portfolio, we are poised to capture a large portion of the crowdfunding market share. The laws surrounding crowdfunding are rapidly moving through the regulatory approval process. We now manage a growing subscriber base of active investors and can refine our current portfolio while reshaping the criteria for our future investments. The SEC is in its final stages of comments surrounding The Jobs Act Regulation A (+) and it is an industry wide assumption that ultimately Regulation A (+) will pass and become a viable tool that will allow companies to publicly market new funding projects to qualified investors. We are confident that now that we have completed this acquisition, we have a foothold in an otherwise fragmented industry that will allow us to aggressively communicate with our members about investments and their potential participation."
Fortitude Group, Inc. is a diversified company with investments in multiple sectors of the economy targeting joint ventures, wholly owned subsidiaries and/or majority/minority positions that cross various market segments with the goal of creating a quality company that builds intrinsic value for its shareholders.
Forward Looking Statements
This press release contains forward-looking statements. Such forward-looking statements are subject to a number of risks, assumptions and uncertainties that could cause the Company's actual results to differ materially from those projected in such statements. Forward-looking statements speak only as of the date made and are not guarantees of future performance. We undertake no obligation to publicly revise any forward-looking statements.