/ CORRECTION - Brooke Corporation
May 22 2008 - 5:56PM
Marketwired
OVERLAND PARK, KS - Brooke Corporation (NASDAQ: BXXX) announces
its capital and investment plans. Brooke Corporation's operations
focus on banking through Brooke Savings Bank. Brooke Corporation
also holds investments in other companies, some of which it may
sell or distribute to its shareholders so it can focus on banking.
In addition to Brooke Savings Bank, Brooke Corporation currently
owns:
-- 15,952,000 shares (62%) of the common stock of Aleritas
Capital Corp., formerly known as Brooke Credit Corporation (OTCBB:
BRCR), a specialty finance company,
-- 6,860,000 shares (81%) of the common stock of Brooke Capital
Corporation (AMEX: BCP), an insurance agency franchisor,
-- 100% of the common stock of Brooke Brokerage Corporation, an
E&S insurance broker,
-- 100% of the common stock of Delta Plus Holdings, Inc. a
non-standard auto insurance carrier.
As noted in previous communications, the payment of Brooke
Corporation dividends and the repayment of secured debt by Brooke
Corporation were expected to be funded from the sale of Aleritas
common stock or other assets. In addition, the company had
announced previously that it may declare a distribution of some or
all of the Aleritas stock owned by Brooke Corporation. The recent
decline in Aleritas stock price has prompted Brooke Corporation to
delay the sale of Aleritas stock and the distribution of Aleritas
stock. As a result, until such time as Aleritas stock or other
assets are sold, plans for future cash or stock dividend payments
by Brooke Corporation have been postponed.
Brooke Corporation is attempting to sell its interest in Brooke
Brokerage Corporation during the second quarter and to sell its
interest in Delta Plus Holdings later this year.
Brooke Corporation's secured debt (parent company) includes:
-- $11.5 million loan secured by 100% ownership in Brooke
Bancshares (parent of Brooke Savings Bank)
-- $5.8 million loan secured by 100% ownership in Delta Plus
Holdings,
-- $4.5 million loan secured by Aleritas common stock,
-- $2.5 million loan secured by Aleritas common stock.
The consolidated total equity of Brooke Corporation, including
minority shareholder interests, was approximately $81 million on
March 31, 2008, as compared to consolidated total equity of
approximately $67 million on March 31, 2007.
About Brooke Corporation... Brooke Corporation is listed on the
NASDAQ Global Market under the symbol "BXXX." Brooke Corporation
owns 100 percent of Brooke Savings Bank, a banker agent thrift
institution, 81 percent of Brooke Capital Corporation, an insurance
company and insurance agency, and 62 percent of Aleritas Capital
Corp., a finance company specializing in insurance lending.
This press release contains forward-looking statements. All
forward-looking statements involve risks and uncertainties, and
several factors could cause actual results to differ materially
from those in the forward-looking statements. The following
factors, among others, could cause actual results to differ from
those indicated in the forward-looking statements: the uncertainty
that the company will be able to sell its investments in other
companies on acceptable terms and in a timely manner; the share
price of Aleritas and Brooke Capital common stock; the availability
of funding sources; changes in the law and in economic, political
and regulatory environments; changes in management; the
effectiveness of internal controls; and risks and factors described
from time to time in reports and registration statements filed by
Brooke Corporation with the Securities and Exchange Commission. A
more complete description of Brooke's business is provided in
Brooke Corporation's most recent annual, quarterly and current
reports, which are available from Brooke Corporation without charge
or at www.sec.gov.
Investor Relations Contact: Linda Rothemund Market Street
Partners Email Contact (415) 445-3236
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