SOURCE: VitalTrust Business Development Corporation

March 05, 2007 09:27 ET

VitalTrust Business Development Company Plans Stock Dividend

Company Plans to Spin Off Client Companies in the Healthcare, Energy and Services Sector

TAMPA, FL -- (MARKET WIRE) -- March 5, 2007 -- VitalTrust Business Development Corporation ("VitalTrust" or the "Company") (OTCBB: VTBD) today announced the Company had completed its organizational Board Meeting and approval of its business model.

Held at the Company's headquarters in Tampa, Florida, the Company's Directors held a Special Formation Meeting on Friday, March 2, 2007 during which three outside and two inside Directors were appointed. In addition, the Company created its Audit, Compensation, Investment and Governance Committees and will be making Committee Member appointments in the coming weeks. During this Special Formation Meeting, the Board also approved the Company's operating business model. Initial Members of the inside Board include Chairman of the Board and Chief Executive Officer Charles Broes, Director and Chief Operating Officer Mark Clancy. Initial Outside Board Members include Mr. Robert Snibbe, Mr. David Hood and Ms. June Nuckols. The Company intends to have a total of five outside and four inside Directors.

The VitalTrust business model foresees the Company providing management and finance to small, primarily private US companies. As a part of the compensation, client companies will issue 10% ownership to VitalTrust plus investment equity. At a point in time when the client company achieves positive earnings and cash-flows, VitalTrust will distribute 5% of its holding to the Company's shareholders of record and will retain 5% in the Company's portfolio. In a format typically referred to as a spin-off, VitalTrust will register the stock issued to shareholders as well as any shares owed as a result of financing and initiate trading through an NASD registered firm. Typically, VitalTrust will seek to accept client companies which can be spin-out candidates within a six to eight month window.

VitalTrust currently has active projects in the healthcare, energy and services business sectors. During the coming two weeks, VitalTrust will introduce the Company's initial slate of client companies and indicate which are spin-out candidates during the current calendar year.

About VitalTrust Business Development Corporation:

VitalTrust, a registered Business Development Company under the Investment Company Act of 1940, provides management and finance primarily to private companies that desire to become publicly traded during the course of their business cycle. The Company invests and manages enterprises in the healthcare, energy, internet and services sectors. The Company's business model foresees the finance and management of client companies through the point of profitable operations and positive cash-flows and concludes with a spin-out distribution to the VitalTrust shareholders of record. The Company's annual forecast envisions two to four spin-off distributions to the VitalTrust shareholders.

Investors are cautioned that certain statements contained in this document are "Forward-Looking Statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements which are predictive in nature, which depend upon or refer to future events or conditions, which include words such as "believes," "anticipates," "intends," "plans," "expects" and similar expressions. In addition, any statements concerning future financial performance (including future revenues, earnings or growth rates), ongoing business strategies or prospects, and possible future US Energy Initiatives actions, which may be provided by management, are also forward-looking statements as defined by the act. These statements are not guarantees of future performance.

Contact Information

  • For information at the Company contact:
    Charles Broes
    Chief Executive Officer
    813-287-5787, extension 222

    Mark Clancy
    Chief Operating Officer
    813-287-5787, extension 226