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SOURCE Capstone Financial Group, Inc.
IRVINE, Calif., June 12, 2014 /PRNewswire/ -- Capstone Financial Group, Inc. (OTCBB: CAPP) ("Capstone") announced today that it has agreed to invest $57 million in Twinlab Consolidation Corporation through a private offering.
The 3-year agreement struck between the two companies allows Capstone to purchase shares of Twinlab Consolidation Corporation common stock directly and provides for the purchase of additional shares of common stock through the exercise of warrants during that time. Under the agreement, Capstone's total investment in Twinlab Consolidation Corporation equals $57 million in cash and represents an ownership stake of just over 38 percent.
"We are determined to build the best franchise in Health & Wellness and we have laid out a clear plan to deliver long-term shareholder value," said Twinlab Consolidation Corporation Chief Executive Officer Tom Tolworthy. "I am confident that we have the capital and liquidity we need to run our business. At the same time, I also recognize that Capstone's large investment in us is a strong endorsement of our vision and our strategy."
"Twinlab Consolidation Corporation is a strong, well-led company and we called Tom to tell him we wanted to invest in it," said Capstone Financial Group, Inc. Chairman and Chief Executive Officer Darin Pastor. "We are impressed with the future profit-generating abilities of this franchise, and that they are acting aggressively to make strategic acquisitions to capitalize on the fast growing Health and Wellness industry. Twinlab Consolidation Corporation is focused on consolidating this fragmented, yet ever expanding industry, and we see the value of the company's strategy."
"This initial investment by Capstone sets the framework for Twinlab Consolidation Corporation to acquire Twinlab and two related Health & Wellness companies," added Capstone Financial Group, Inc. President and Chief Investment Officer George Schneider. We are also prepared to support Twinlab Consolidation Corporation in its future acquisitions."
About Capstone Financial Group, Inc.
Founded in 2013 by Chairman and Chief Executive Officer Darin Pastor, Capstone Financial Group, Inc. (CAPP) is an exclusive holding company headquartered in Irvine, Calif. Capstone uses its own capital to acquire the outstanding stock of other companies. Capstone works closely and constructively with the management and boards of its portfolio companies, aiming to significantly enhance their long-term earnings power and thus increase shareholder value. For more information, visit www.capstonefinancialgroupinc.com.
Statements in this press release relating to Capstone Financial Group, Inc.'s future plans, expectations, beliefs, intentions, and prospects, such as "forward-looking statements" are subject to material risks and uncertainties. When used in this press release, the words "will," "future," "expect," "look forward to," similar expressions and any other statements that are not historical facts are intended to identify those assertions as forward-looking statements. Any such statement may be influenced by a variety of factors, many of which are beyond the control of Capstone Financial Group, Inc. that could cause actual outcomes and results to be materially different from those projected, described, expressed or implied in this press release due to a number of risks and uncertainties. Accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur. All information set forth in this press release is current as of June 12, 2014. Capstone Financial Group, Inc. undertakes no duty to update any statement in light of new information or future events.
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