SOURCE: Rockwood National Corp

December 22, 2010 10:03 ET

Rockwood Announces the Acquisition of Elite Home Loans, Inc.

BOCA RATON, FL--(Marketwire - December 22, 2010) - Rockwood National Corp. (PINKSHEETS: RNTL) ("Rockwood") announced today that following the successful reverse merger with AmRes Services Group, Inc., in November, 2010, it has closed on the acquisition of Elite Home Loans, Inc., a private Tennessee-based HUD Full Eagle mortgage lender ("Elite", In exchange for the 100% ownership interest in Elite, Rockwood will issue US$200,000 in capital stock pro rata to the shareholders of Elite at closing, and pay an additional performance earn out to Elite based on net profitability over the next 2 years. The total value of the transaction is estimated at US$2 million.

Gary A. Fioretti, Chief Executive Officer of Rockwood, stated: "Elite is the first of a number of planned acquisitions by Rockwood to implement its core business model of aggregating mortgage lending and real estate operations nationally. Having steadily grown over the last 6 years to more than US$120 million in residential loan production, and along with its strategic alliance with a nationally-branded, multi office real estate brokerage to provide purchase money mortgage financing, Elite is poised to significantly grow its profitability in the coming quarters. We are extremely pleased that Elite has become a part of the Rockwood family."

Gary further added that "Rockwood will strengthen the balance sheet of Elite with additional capital to allow for increase of its existing warehouse credit facilities. This will enable Elite to facilitate residential loan production growth at an accelerated rate, while simultaneously allowing the planned office expansion in surrounding states."

About Rockwood National Corp.
Rockwood is a diversified, national real estate services company focused on the primary components in the industry. By pursuing a strategy of providing complete default loss mitigation (REO & Short Sale), real estate brokerage, full mortgage origination and title service capabilities, Rockwood's goal is to quickly capture market share in each sector and become the preferred "one-stop" provider of choice. At the end of the current distressed asset lifecycle, Rockwood anticipates having built an unmatched national real estate and mortgage distribution channel for continued production, and be in superior position to offer portfolio retention services to financial institutions across the country. By monetizing the activities of its core components through internal operations as well as the referral and revenue sharing with its strategic partners, Rockwood views the development of this professional network as a valuable asset to drive earnings while simultaneously creating continued growth opportunities. It is these same preferred partners that ultimately will become the next acquisition candidates as Rockwood continues to grow its nationwide distribution network.

Forward-Looking Statements
Certain statements in this news release are forward-looking. All statements other than statements of historical facts included in this news release including, without limitation, statements preceded by, followed by or that otherwise include the words "believes," "expects," "anticipates," "intends," "estimates," "projects," "potential," "target," "goal," "plans," "objective," "should," "may," "would" or similar expressions or variations on such expressions are forward- looking statements. Rockwood can give no assurances that the assumptions upon which the forward-looking statements are based will prove to be correct. Because forward-looking statements are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by the forward-looking statements. There are a number of risks, uncertainties and other important factors that could cause Rockwood's actual results to differ materially from the forward-looking statements including, but not limited to, Rockwood's ability to identify appropriate corporate acquisition and/or joint venture opportunities in the real estate sector, Rockwood's ability to raise the required capital to take advantage of and successfully participate in any such opportunities, and future economic conditions affecting real estate valuations. Rockwood disclaims any obligations or undertaking to publicly release any updates or revisions to any forward-looking statement contained in this news release to reflect any change in its expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.

Contact Information

  • Gary Fioretti