Novation Holdings (NOHO) Completes Acquisition of FGLD; Initiates Roll-Up Plan
December 17 2013 - 9:38AM
Marketwired
Novation Holdings (NOHO) Completes Acquisition of FGLD; Initiates
Roll-Up Plan
BOCA RATON, FL--(Marketwired - Dec 17, 2013) - Novation Holdings
(OTCQB: NOHO) today announced that it completed the acquisition of
a controlling interest in Focus Gold Corporation (OTCQB: FGLD) the
purchase of Series A Convertible Preferred Stock in FGLD with
voting power equal to 55 percent of all voting stock of FGLD, for a
cash subscription price. With the funds from this acquisition,
FGLD has begun to implement its roll-up of accounts receivable
management companies and has formed two wholly-owned subsidiaries,
Focus Gold Financial Corp., which will focus on the retail
collections market, and Focus Gold Commercial Resolution, which
will focus on the commercial recovery market. According to Michael
Gelmon, CEO of Novation Holdings and the new interim CEO of FGLD:
"This acquisition will provide us with the opportunity to expand
our market activities through FGLD into a new, high volume cash
flow business which currently operates through many small local
collection offices and which is ripe for a roll-up
strategy. By providing back-office administrative and
financial management through our administrative subsidiary,
Novation Consulting Services, Inc., we believe we will be able to
create an efficient, profitable operation in this large market
segment."
The business and retail collection industry employs more than
450,000 people nationwide through more than 4,000 separate
collection agencies and in the commercial side alone, more than
$150 billion in debt was placed with collection agencies in 2011,
resulting in more than $40 billion in collections. Mr. Gelmon
stated: "Our plan is to assist FGLD in identifying talented leaders
in this industry, set up offices for the new operations and begin
identifying acquisition opportunities."
FORWARD LOOKING STATEMENT
Certain statements contained herein and subsequent oral
statements made by and on behalf of Novation Holdings, Inc. may
contain "forward looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995. Such forward
looking statements are identified by words such as "intends",
"anticipates", "believes", "expects", and "hopes" and includes,
without limitation, statements regarding Novation Holdings, Inc.'s
plan of business operations, product research and development
activities, anticipated revenues and expenses and potential
contractual arrangements and obligations. Also, our management may
make forward-looking statements orally to investors, analysts, the
media and others. Any statements made in this news release about an
action, event or development, are forward-looking statements. Such
statements are based upon assumptions that in the future may prove
not to have been accurate and are subject to significant risks and
uncertainties. Such statements are subject to a number of
assumptions, risks and uncertainties, many of which are beyond the
control of the Company. These risks and others are included from
time to time in documents we file with the Securities and Exchange
Commission, including but not limited to, its Form 10-Ks, Form
10-Qs and Form 8-Ks. Other unknown or unpredictable factors also
could have material adverse effects on our future results.
Accordingly, you should not place undue reliance on these
forward-looking statements. Although the Company believes that the
expectations reflected in the forward-looking statements are
reasonable, it can give no assurance that its forward-looking
statements will prove to be correct. Investors are cautioned that
any forward-looking statements are not guarantees of future
performance and actual results or developments may differ
materially from those projected. The forward-looking statements in
this press release are made as of the date hereof. The Company
undertakes no obligation to update or correct its own
forward-looking statements, except as required by law or those
prepared by third parties that are not paid by the Company. The
Company's SEC filings are available at http://www.sec.gov.
Contact: Contacts: Novation Holdings, Inc. Media Department
media@novationholdings.com
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