SOURCE: Novation Holdings, Inc.
BOCA RATON, FL--(Marketwired - Dec 17, 2013) - Novation Holdings (OTCQB: NOHO) today announced that it completed the acquisition of a controlling interest in Focus Gold Corporation (OTCQB: FGLD) the purchase of Series A Convertible Preferred Stock in FGLD with voting power equal to 55 percent of all voting stock of FGLD, for a cash subscription price. With the funds from this acquisition, FGLD has begun to implement its roll-up of accounts receivable management companies and has formed two wholly-owned subsidiaries, Focus Gold Financial Corp., which will focus on the retail collections market, and Focus Gold Commercial Resolution, which will focus on the commercial recovery market. According to Michael Gelmon, CEO of Novation Holdings and the new interim CEO of FGLD: "This acquisition will provide us with the opportunity to expand our market activities through FGLD into a new, high volume cash flow business which currently operates through many small local collection offices and which is ripe for a roll-up strategy. By providing back-office administrative and financial management through our administrative subsidiary, Novation Consulting Services, Inc., we believe we will be able to create an efficient, profitable operation in this large market segment."
The business and retail collection industry employs more than 450,000 people nationwide through more than 4,000 separate collection agencies and in the commercial side alone, more than $150 billion in debt was placed with collection agencies in 2011, resulting in more than $40 billion in collections. Mr. Gelmon stated: "Our plan is to assist FGLD in identifying talented leaders in this industry, set up offices for the new operations and begin identifying acquisition opportunities."
FORWARD LOOKING STATEMENT
Certain statements contained herein and subsequent oral statements made by and on behalf of Novation Holdings, Inc. may contain "forward looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward looking statements are identified by words such as "intends", "anticipates", "believes", "expects", and "hopes" and includes, without limitation, statements regarding Novation Holdings, Inc.'s plan of business operations, product research and development activities, anticipated revenues and expenses and potential contractual arrangements and obligations. Also, our management may make forward-looking statements orally to investors, analysts, the media and others. Any statements made in this news release about an action, event or development, are forward-looking statements. Such statements are based upon assumptions that in the future may prove not to have been accurate and are subject to significant risks and uncertainties. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company. These risks and others are included from time to time in documents we file with the Securities and Exchange Commission, including but not limited to, its Form 10-Ks, Form 10-Qs and Form 8-Ks. Other unknown or unpredictable factors also could have material adverse effects on our future results. Accordingly, you should not place undue reliance on these forward-looking statements. Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, it can give no assurance that its forward-looking statements will prove to be correct. Investors are cautioned that any forward-looking statements are not guarantees of future performance and actual results or developments may differ materially from those projected. The forward-looking statements in this press release are made as of the date hereof. The Company undertakes no obligation to update or correct its own forward-looking statements, except as required by law or those prepared by third parties that are not paid by the Company. The Company's SEC filings are available at http://www.sec.gov.