Paragon Announces Acquisition of Shearson Home Loans From Consumer Direct of America, Inc.
February 07 2006 - 6:59AM
PR Newswire (US)
PONTE VEDRA BEACH, Fla., Feb. 7 /PRNewswire-FirstCall/ -- Paragon
Financial Corporation (OTC:PGNF) (BULLETIN BOARD: PGNF) , a
consolidator in the highly fragmented financial services
marketplace, announced today that it reached an agreement to
acquire Shearson Home Loans, Inc. from Consumer Direct of America,
Inc. (OTC:CSUA) (BULLETIN BOARD: CSUA) . Under the agreement,
Paragon will issue to Consumer Direct of America the equivalent of
four shares of Paragon's common stock for each Paragon share and
share equivalent outstanding. Shearson Home Loans, Inc. is a
fast-growing provider of residential mortgages. It employs over 300
people, 250 of whom are residential mortgage real estate brokerage
professionals who had closed-loan volume of $1.1 billion, which
accounted for over 6,435 loan transactions in 2004. Shearson
operates 54,000 sq. ft. of branch office space with 37 locations in
30 states. The company is a consolidator of independent mortgage
brokerages and has grown rapidly during the last three years
through acquisition and consolidation. "We view Shearson as an
ideal partner in our quest to consolidate the mortgage brokerage
industry," said Paul Danner, CEO of Paragon Financial Corporation.
"Not only do we share the same vision for the industry, but melding
our complementary management talent, business processes, and
geographic locations into a single operating entity should produce
positive tangible synergy," he added. "With the completion of this
transaction, we no longer have to advance the theoretical concept
of a desired end-state, but instead are able to clearly demonstrate
to prospective acquisition candidates a proven, fully-functional
operating platform," said Scott Vining, chief financial officer of
Paragon. About Paragon Financial Corporation Paragon Financial
Corporation (http://www.pgnf.com/) is a financial services business
focused on the acquisition of companies that originate mortgages
loans or provide other financial services. SEC Filings and
Forward-Looking Statements Certain information contained in this
announcement are "forward-looking statements." Paragon cautions
readers that certain important factors may affect actual results
and could cause such results to differ materially from any
forward-looking statements which may be deemed to have been made in
this announcement or which are otherwise made by or on behalf of
Paragon. The forward looking statements are identified through use
of the words "potential," "anticipate," "expect," "planned" and
other words of similar meaning. These forward-looking statements
may be affected by the risks and uncertainties inherent in the
mortgage industry and in the Company's business. The Company
cautions readers that certain important factors may have affected
and could in the future affect the Company's beliefs and
expectations and could cause the actual results to differ
materially from those expressed in any forward-looking statement
made by or on behalf of the Company. The Company undertakes no
obligation to update forward-looking statements to reflect events
or circumstances after the date hereof. Factors which may affect
results include, but are not limited to, the ability to raise
capital necessary to sustain operations and implement the business
plan, the ability to obtain additional regulatory permits and
approvals to operate in the financial services area, the ability to
identify and complete acquisitions and successfully integrate
acquired businesses, if any, the ability to implement the company's
business plan, changes in the real estate market, interest rates or
the general economy of the markets in which the company operates.
Additional information regarding Paragon is contained in the
Company's Annual Report on Form 10-K filed with the U.S. Securities
and Exchange Commission. MEDIA CONTACT PARAGON FINANCIAL
CORPORATION Scott Vining, Chief Financial Officer 904-285-0000
DATASOURCE: Paragon Financial Corporation CONTACT: Scott Vining,
Chief Financial Officer of Paragon Financial Corporation,
+1-904-285-0000, Web site: http://www.pgnf.com/
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