ERIE, PA--(Marketwired - Apr 30, 2014) - Fortitude Group, Inc. (OTC: FRTD) announced today that their recently announced acquisition of ProCap Funding has been modified from an acquisition to a partnership agreement.
On October 24, 2013, the company announced that on October 3, 2013, they had entered into a share purchase agreement to acquire ProCap Funding, Inc. This acquisition was conditional, requiring specific performances by both parties. As of the beginning of March 2014, this merger had still not closed.
While working aggressively to complete their 2013 acquisition schedule, Fortitude has also worked to complete their well-publicized Share Repurchase Program. To finish this acquisition schedule and continuing to keep their focus on reducing the issued and outstanding stock, Fortitude management met with ProCap and negotiated a partnership agreement vs. a total acquisition. By entering into this notable agreement, the company immediately protected 400,000,000 Fortitude shares which were to-be-issued as remuneration for the ProCap acquisition. Management further negotiated that ProCap would continue to fund the company through a series of staggered 1-year notes, which can be converted at $.15 per share, $.25 per shares and $.35 per share. These notes were issued in face amounts of $2,000,000.00. Proceeds will be used to complete the pending Fortitude acquisition schedule which will enable the company to cover increasing general business and administrative costs while expanding their management team.
Thomas J. Parilla, CEO of Fortitude stated, "We are ecstatic to be partnered with ProCap. We presented ProCap management with a longer term investment plan and they accepted our proposed method as evidenced by their show of support by funding our Share Repurchase Program. We are aggressively working to close out our previously announced 2013 acquisitions which we expect to complete this quarter. We will have several acquisition updates during the month of May."
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.