SOURCE: Shearson Home Loans

April 03, 2007 09:30 ET

Shearson Announces Rescission of Acquisition of Real Property Technologies

LAS VEGAS, NV -- (MARKET WIRE) -- April 3, 2007 -- Shearson Financial Network, Inc. (OTCBB: SFNN), a consolidator in the highly fragmented financial services marketplace, announced today that it reached an agreement to rescind the acquisition of Real Property Technologies LLC. Under the agreement, Shearson will receive back Preferred Shares of stock previously issued to RPT's shareholders valued at forty million dollars.

The rescission returns to Shearson one hundred thousand shares of Shearson Series A Preferred stock which was convertible into two billion shares of SFNN's common stock. "When we purchased RPT in June of last year, we believed we could incubate the company, restructure their financial systems, and subsequently take it public with its own IPO and deliver value to our shareholders," states Michael Barron, Shearson's CEO. "We were able to secure an underwriting with a prominent New York investment banker, but the promised earnings from RPT never materialized. Our decision was to rescind the transaction and return the Preferred Shares which substantially reduces the dilution to our shareholders." The transaction removes any of RPT's financial information from Shearson's reporting.

About Shearson Financial Network, Inc.

The company is a consolidator of independent mortgage brokerages and has grown rapidly during the last three years through acquisition and consolidation. Shearson operates 17,538 sq. ft. of branch office space licensed in 34 states. The company currently is seeking new branches for its growing network. For more information, please visit the company's website at www.shearsonfinancialnetwork.com.

Statements in this press release other than statements of historical fact, including statements regarding the company's plans, beliefs, and estimates as to projected results and market size are "forward-looking statements." Such statements are subject to certain risks and uncertainties, including factors listed from time to time in the company's SEC filings, and actual results could differ materially. These forward-looking statements represent the company's judgment as of the date of this release. The company disclaims, however, any intent of obligation to update these forward-looking statements.

Contact Information

  • CONTACT:
    Shearson Financial Network
    Las Vegas, Nevada
    Michael Barron
    702-868-7922