SOURCE: StarInvest Group, Inc.

January 23, 2007 15:59 ET

StarInvest Group Portfolio Company Announces It Has Raised $12.5 Million in Private Placement

MIDLAND, TX -- (MARKET WIRE) -- January 23, 2007 -- StarInvest Group, Inc. (OTCBB: STIV) is pleased to announce that one of its portfolio companies, Miscor Group, Ltd., a provider of electrical contracting and industrial services, announced on January 19, 2007 that it has raised $12.5 million through the private placement of 62.5 million shares of its common stock to Tontine Capital Partners, L.P. and Tontine Capital Overseas Master Fund, L.P. Miscor will use the proceeds from the sale to pay off $10 million of senior secured debt and for general working capital purposes.

StarInvest Group, Inc. currently holds $800,000 Convertible Debenture and 845,834 shares of common stock of Miscor. StarInvest Group, Inc. does not expect Miscor to use the proceeds from the sale to pay off their debt.

About StarInvest

StarInvest Group is a Business Development Company (BDC) with its principal office located in Texas. BDCs are publicly traded, closed-end investment companies regulated by the Investment Company Act of 1940. StarInvest Group was founded on the premise that the magnitude and consistency of investment returns can be significantly enhanced by combining both operational talent and financial talent within a single private equity investment firm. StarInvest Group has implemented a strategy to create value for shareholders by investing in emerging companies that are positioned for strong industry growth or have business models with strong cash flow potential. In addition to structuring financing requirements, StarInvest provides managerial assistance and strategic links between the Portfolio Companies enabling them to maximize their resources for marketing, business development, administration, public listing planning, and realization of their goals.

About MISCOR

South Bend, Ind.-based MISCOR Group conducts operations through three principal subsidiaries: Magnetech Industrial Services, Inc., which is primarily engaged in providing maintenance and repair services to industry for electric motors, lifting magnets and power distribution systems; Martell Electric, LLC, which provides a wide range of electrical contracting services for industrial, commercial and institutional customers; and HK Engine Components, LLC, which manufactures, repairs and engineers power assemblies for large diesel engines. Formerly known as Magnetech Integrated Services Corp., MISCOR was ranked on the Inc. 500 in 2004 and 2005 before going public in 2006, and has grown to more than 400 employees in 12 locations nationwide.

Forward-Looking Statements

This press release includes "forward-looking statements" within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements involve certain risks and uncertainties that ultimately may not prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements. For further discussion of risks and uncertainties, individuals should refer to the Company's SEC filings. StarInvest Group, Inc. undertakes no obligation and does not intend to update these forward-looking statements to reflect events or circumstances occurring after this press release. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. All forward-looking statements are qualified in their entirety by this cautionary statement.

Contact Information

  • Contact:
    Robert Cole
    StarInvest Group, Inc.
    432.682.8373
    Email Contact