SOURCE: CorpHQ, Inc.

March 13, 2007 09:40 ET

Stronghold Board Agrees to Restructure CorpHQ Ownership Interest

REDONDO BEACH, CA -- (MARKET WIRE) -- March 13, 2007 -- CorpHQ, Inc. (PINKSHEETS: COHQ) today announced that its proposal to restructure a portion of its ownership in Stronghold Industries Inc. (PINKSHEETS: SGDS) has been accepted by the Stronghold Board of Directors.

The proposal dated March 6, 2007 from CorpHQ, Inc. CEO Steve Crane, read in part:

"Today CorpHQ, Inc. holds three separate Notes from Stronghold totaling $430,918. These Notes are fully secured by the assets of your company and are also convertible into shares of common stock at our sole option... CorpHQ is also the owner of 22,446,179 shares of Stronghold's common stock. Since the inception of your predecessor company, CorpHQ has invested a total of $3,455,926 into Stronghold..."

"We propose to: (a) Extend Notes totaling $250,000 for one year from the date of the proposed transaction; (b) Invest the sum of $30,000; and (c) Return the sum of 12,748,306 shares of common stock to Stronghold. In exchange, we will accept: (a) the sum of 4,000,000 shares of Class 'A' $0.50 Stated Value, 10% Convertible Preferred Stock defined as follows: (i) Dividends are to be paid yearly, in cash or in kind; (ii) Convertible at any time after 24 months at our sole discretion into common stock at Stated Value less a 50% discount to the 10-day average Bid price of your common stock; and (iii) Callable by the Company at any time at 110% to Stated Value plus all in-kind dividend payments and accrued but unpaid dividends; and (b) a Standstill Agreement barring the issuance of any convertible debt or securities."

Crane said, "Our long-term opinion of Stronghold remains extremely positive, and we believe that these actions will benefit not only the company but all of its shareholders. It substantially reduces the number of shares that can potentially enter the market in the next two years, and removes any concerns about our patience with regard to the outstanding debt."

Crane added, "We have reaffirmed our long-term commitment to Stronghold and continue to work very closely with management. This transaction should work well for both companies, and we look forward to closing it this quarter."

About CorpHQ, Inc.

CorpHQ, Inc. provides management services to high caliber early stage companies. The company voluntarily reports all financial information and material events on www.pinksheets.com.

Forward-Looking Statements

Any statements made in this press release that are not based on historical facts are "forward-looking statements," as such term is defined in the Private Litigation Reform Act of 1995. Although such statements are based on management's current estimates and expectations, and currently available competitive, financial, and economic data; forward-looking statements are inherently uncertain. We, therefore, caution the reader that there are a variety of factors that could cause business conditions and results to differ materially from what is contained in our forward-looking statements. For a description of some of the factors which may occur that could cause actual results to differ from our forward-looking statements please refer to our 2005 Voluntary Annual Report and subsequent Voluntary Quarterly Reports, and in particular the discussions contained under "Risk Factors."

Contact Information

  • For more information please contact:
    CorpHQ, Inc.
    Gregg Davis
    (310) 683-0404
    Email Contact