July 07, 2008 09:35 ET

Fortress Financial Group, Inc. -- Substantial Stock Repurchases

Company Confirms That 27.4% of Its Outstanding Shares of Common Stock Have Been Repurchased and Cancelled

NEW YORK, NY--(Marketwire - July 7, 2008) - Fortress Financial Group, Inc. (PINKSHEETS: FFGO) confirms that the Company has repurchased an amount of 14,709,083,248 shares of its Common Stock and cancelled an additional amount of 1,500,00,000 shares of its Common Stock. A total amount of 16,209,083,248 shares of the Company's shares of Common Stock are now being cancelled by the Company's Transfer Agent. This represents a 27.4% reduction in the Company's outstanding shares of Common Stock.

The total cost to date of this repurchase of the Company's shares of Common Stock is now in the amount of US$204,456,256. This valuation excluded the value of the Company's intangible assets and the Company's stockholdings in St James Capital Holdings, Inc.

The Company's Net Asset Value is valued in the amount of US$617,541,466 as at July 7, 2008. This translates into a Net Asset Value per Share in the amount of 1.44 cents based upon the number of the Company's outstanding shares of Common Stock now being in the amount of 42,941,766,809. The Company has marked down its valuation in respect of its stockholdings in Hunt Gold Corporation to a price of US$0.002 per Hunt Gold Corporation share, for the purposes of this calculation.

The Company's Management notes that the Company has lost hundreds of millions of dollars "on paper" in respect of its stockholdings in Hunt Gold Corporation. It is expected that this will be rectified in the medium term. The Company's Management remains extremely bullish in respect of Hunt Gold Corporation's prospects and upon the value of that Company's Gold Assets.

The Company's Management considers the outstanding number of its shares of Common Stock to be considerably higher than desired and intends to undertake further and more aggressive steps to reduce this number of outstanding shares, in the short term.

The Company is filing a very detailed Form 8-K with the SEC in and during today, in respect of these transactions.

The Company has been formally notified that several unrelated stockholders now hold in excess of 5% of the Company's "free trading" stock based upon the reduced number of outstanding shares. Several parties have informally notified the Company that they have now accumulated significant amounts of the Company's shares of Common Stock.

The Company is awaiting the filing of these various Form 13(g) and Form 13(d) notifications by these third party investors, with the SEC; and upon receipt thereof will be in a position to advise our stockholders as to the exact number of shares in the "free float."

About Fortress Financial Group, Inc.

Fortress Financial Group, Inc. was primarily engaged in the issuing and marketing of prepaid debit card and related payment solution activities. Upon the closure of the Trinity Mercantile Finance and the Mortgage Bank acquisitions, Fortress Financial Group, Inc. will expedite its plans to become a broadly based Consumer Finance Group. The "Mortgage Division" will comprise the vast majority of the Group's earnings in the immediate to medium term.

The Company is utilizing is substantial Balance Sheet of circa US$700 million, comprised of quoted and unquoted Gold Mining & Exploration stocks, to aggressively fund a large number of acquisitions in the consumer financial services sector, initially focused on the Mortgage Lending and Banking sector.

This release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. "Forward-looking statements" describe future expectations, plans, results, or strategies and are generally preceded by words such as "may," "future," "plan" or "planned," "will" or "should," "expected," "anticipates," "draft," "eventually" or "projected." You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in a company's annual report on Form 10-K or 10-KSB and other filings made by such company with the SEC.

Contact Information

  • Contact:

    Fortress Financial Group, Inc.
    Alan Santini
    Chief Executive Officer

    Email Contact

    Tel: (954) 840-6961