SOURCE: Shearson Home Loans

August 24, 2007 15:36 ET

Shearson Financial Network, Inc. Announces Stock Split

LAS VEGAS, NV--(Marketwire - August 24, 2007) - Shearson Financial Network, Inc. (OTCBB: SHSN) today announced that its Board of Directors has effected a 200-for-1 reverse stock split. The split became effective on August 24, 2007 following its unanimous approval by the Board of Directors on August 10, 2007.

As a result of the reverse stock split, every 200 shares of Shearson common stock will be combined into one share of Shearson common stock. The reverse stock split affects all shares of common stock, stock options, and warrants of Shearson outstanding as of immediately prior to the effective time of the reverse stock split. Following the split, Shearson Financial Network, Inc. will have approximately four million six hundred thousand shares outstanding. Shearson, which formerly traded under the symbol SFNN, began trading under its new symbol SHSN on the OTC Bulletin Board today.

"The Board took this action to create more visibility and awareness of the Company's shares amongst potential investors," said Michael A. Barron, Chief Executive Officer of Shearson Financial Network, Inc. "We continue to pursue our acquisition and growth plan and believe this reverse split will enable a wider audience of potential investors. Realigning our share base is a step in our strategy to deliver long-term stockholder value."

Continental Stock Transfer & Trust Company is acting as exchange agent for the reverse split, and Continental will send letters of transmittal to stockholders instructing them on how to exchange their share certificates.

About Shearson Financial Network, Inc.

The company is a consolidator of independent mortgage brokerages. Shearson operates 17,538 sq. ft. of branch office space licensed in 33 states. The company currently is seeking new branches for its growing network. For more information, please visit the company's website at www.sfnncorp.com or www.shearsonhomeloans.com

Shearson Financial Network, Inc. reported net income of $ 2.8 million for the year ending December 31, 2006 and the company's operating unit, Shearson Home Loans, contributed $1.6 million to earnings. The value of Assets held by SFNN increased to $30.6 million for the year ended December 31, 2006 from $4.4 million in 2005, an increase of 590%. Net worth increased to $6.4 million from $(7.8) million during the same period, representing an increase of $14.2 million. Revenue from the originations of loans increased 25% or $1.7 million to $ 8.5 million Earnings per share for the year ended December 31, 2006 was $0.02 as compared to a loss per share of $0.50 from the year ended December 31, 2005.

Statements in this press release other than statements of historical fact, including statements regarding the company's plans, beliefs, and estimates as to projected 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 from expected results. 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