SOURCE: Franchise Capital Corporation

April 03, 2007 11:10 ET

Franchise Capital Corporation Releases April 2007 Investor Newsletter

TEMECULA, CA -- (MARKET WIRE) -- April 3, 2007 -- Franchise Capital Corporation (PINKSHEETS: FCCN) today announced the release of its April 2007 investor newsletter. A PDF version of the newsletter is posted in the newly expanded media archive of the company's website at http://www.franchisecapitalcorp.net/media.php?type=newsletters and a notice has been distributed through its website-based mailing list.

The April 2007 newsletter includes a message from Franchise Capital Chief Executive Officer Steven R. Peacock in which he discusses the timetable for filing several quarterly and annual reports for past periods. Under former management, these reports became delinquent, and it has been a major focus of current management to bring the company's filings current. In the course of filing proxy material for the recent annual shareholders meeting, several estimated dates were given for the delinquent filings to be complete, including February 28, 2007 and March 15, 2007.

In the newsletter, Mr. Peacock comments, "Clearly, those estimated timetables have not been met, and I will take full responsibility for this lapse. From the beginning of our involvement with Franchise Capital, management has prided itself in setting realistic expectations, communicating accurately with shareholders and meeting the deadlines we set. This is the first significant deadline that has been not been satisfactorily met and we are working hard to rectify this situation as quickly as possible."

The newsletter also reports on the March 13, 2007 annual meeting, in which a vote of shareholders authorized the Board of Directors to withdraw the company's election to be regulated as a business development company (BDC) pursuant to the Investment Company Act of 1940.

Immediately following the adjournment of the meeting, Franchise Capital filed a Form N-54C, notifying the Securities and Exchange Commission that the company has withdrawn its election to be subject to sections 55 through 65 of the Investment Company Act of 1940. The withdrawal became effective immediately, and as of the date of the meeting, Franchise Capital began conducting business as an operating company rather than as a business development company subject to the Investment Company Act.

"The BDC withdrawal is clearly a significant milestone for the Company, especially as it looks to complete its acquisition of Aero Exhaust," added Mr. Peacock.

To sign up to receive information by email directly from Franchise Capital Corporation whenever new press releases, investor newsletters, SEC filings, and other new material is issued by the company, including an upcoming interview with Mr. Peacock, please visit http://www.franchisecapitalcorp.net.

About Aero Exhaust:

Aero Exhaust is a world leader in performance exhaust airflow technology, manufacturing and distributing the most technologically advanced muffler on the market. Its product lines are built to the highest industry standards and offer the consumer a lifetime warranty. Aero Exhaust has been issued U.S. and Australian patents on its innovations and development in the exhaust industry, and its mufflers are available worldwide through major retailers, mass merchant centers, automotive aftermarket supply stores and wholesalers. Aero Exhaust mufflers are an exclusive National Association for Stock Car Auto Racing (NASCAR) Performance product and carry the prestigious NASCAR brand on product, packaging and related media. NASCAR legend Rusty Wallace is the official spokesperson for Aero Exhaust products. Additional information on Aero Exhaust's products, race team, and motorsports ventures can be found on its corporate web site, www.aeroexhaust.com.

Safe Harbor Statement: The statements in this release that relate to future plans, expectations, events, performance and the like are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and the Securities Exchange Act of 1934. Actual results or events could differ materially from those described in the forward-looking statements due to a variety of factors, including the lack of funding, inability to complete required SEC filings, and others set forth in the Company's report on Form 10-K/A for fiscal year 2005 filed with the Securities and Exchange Commission.

Contact Information

  • CONTACT:
    Gemini Financial Communications, Inc.
    A. Beyer
    951-587-8072
    Email Contact