SOURCE: Principal Mortgage Fund

February 26, 2008 08:30 ET

Principal Completes Corporate Restructuring

BEVERLY HILLS, CA--(Marketwire - February 26, 2008) - Principal Capital Group, Inc. (PINKSHEETS: PCPG) (PINKSHEETS: AGHG) announced today the Board of Directors of Asgard Holdings, Inc. ("Asgard") has approved the change of the company's name from Asgard Holdings, Inc. to Principal Capital Group, Inc. The name change was effectuated in order to more accurately reflect the future of the company and the fact that an entirely new team of directors and managers has set in motion an exciting, forward-thinking vision for the company.

Mr. Harold Gregg, the interim President, said, "The Company and the shareholders will be well served by this careful transition of executive leadership. The reverse split and the change of the name to more accurately reflect the new direction of the company were the first steps in many that will validate our new business model."

The New Direction:

Principal Capital Group, Inc. ("PCGI") is now a holding company that holds a portfolio of assets of sector-specific Business Development Company (BDC) 40 Act funds. A BDC is a public company which elects to become subject to sections 55 through 65 of the Investment Company Act of 1940. Business Development Companies ("BDCs") may access the capital markets to raise money in two ways. First, they retain the right to file registration statements for significant capital investments. This conversion allows the funds to pursue investments in new ventures as well as invest in portfolio companies using money raised from the public markets. Additionally, the funds may issue stock which becomes freely tradable and legend-free simply upon notice to the United States Securities and Exchange Commission ("SEC").

The original congressional mandate was to allow rapid raising of capital for investment in growth opportunities but for the growth company with opportunities already owned or managed, compliance with the Investment Act allows for quick access to cash for its wholly or partially owned subsidiaries.

The company has the following web site http://www.principalcapitalgroup.com and interested parties can get up-to-date corporate actions and shareholder information at this site.

The company currently holds Principal Structure Fund, Inc., an industry-specific construction fund (http://www.principalstructurefund.com) and Principal Mortgage Fund, Inc. an industry-specific mortgage fund (http://www.principalmortgagefund.com) as portfolio investments. It is the intention of the Board to spin off these holdings to the shareholders of record as of March 28, 2008 on a yet-to-be-determined basis.

The Board of Directors has taken action to effect a reverse split of Asgard's common shares on the basis of one (1) share for every one-hundred-thousand (100,000) shares of common stock that was issued and outstanding as of the 26th day of March, 2008.

The reverse split represents a return to normalcy with regard to the number of shares issued and outstanding, so as to reflect the true nature of the corporation's equity position vis-à-vis other companies in the public arena.

The Board also confirmed that NASDAQ has issued to the company the new stock symbol "OTC: PCPG."

Forward-Looking Statements

Certain statements contained herein are "forward-looking" statements (as such term is defined in the Private Securities Litigation Reform Act of 1995). Because such statements include risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements include, but are not limited to, those discussed in filings made by the Company with the Securities and Exchange Commission.

Contact Information

  • CONTACT:
    Principal Capital Group, Inc.
    Harold Gregg
    800.881.3321
    Email Contact