JENSEN BEACH, Fla., Oct. 17 /PRNewswire/ -- Regency Affiliates, Inc.
("Regency") announced today the completion of a recapitalization which
included the redemption of the 754,950 shares of Regency common stock owned by
Statesman Group, Inc., the former controlling stockholder of Regency, for an
aggregate redemption payment of $1,020,000 (approximately $1.35 per share).
The redemption was funded with the proceeds of loans totaling $4,750,000 from
Royalty Holdings LLC, a private investor group ("Royalty") based in New York.
In addition to providing Regency with needed working capital, proceeds
from the Royalty loans were used by Regency to effect the redemption referred
to above, acquire an option from Statesman to purchase the 20% interest in
National Resource Development Corporation not presently owned by Regency, to
modify the terms of the Regency Series C preferred stock held by Statesman,
and to secure additional agreements from Statesman. $3,500,000 of the Royalty
loans (plus accrued interest) is convertible at the option of Royalty into
shares of Regency common stock at a conversion rate of $2.00 per share.
As part of the recapitalization, the existing board of directors and
management team of Regency will resign without any severance or other
termination payments. Laurence S. Levy, a principal of Royalty, has been
appointed President and Chief Executive Officer of Regency, and Neil N.
Hasson, also a principal of Royalty, has been appointed Chief Financial
Officer and Secretary of Regency. The board of directors of Regency will
consist of Mr. Levy, Mr. Hasson and two independent directors. Regency's new
management team members have extensive experience with operating companies and
real estate investments.
Mr. Levy, Regency's new President and Chief Executive Officer, said, "We
are extremely impressed with the prospects for Regency and its assets. We
look forward to pursuing the monetization of Regency's current investments.
We also expect to grow the asset base of Regency over the next few years with
corporate acquisitions using our significant expertise in this area."
Regency's present investments include an interest in Security Land and
Development Company Limited Partnership. Security Land owns a two story
office building and connected six story tower totaling approximately 717,000
square feet occupied by the Social Security Administration of the United
CAUTIONARY STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF
1995. Statements in this press release may constitute "forward-looking
statements" within the meaning of Section 27A of the Securities Act of 1933,
as amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. Any statements contained herein which are not statements of
historical facts and that address activities, events or developments that
Regency or its management expects, believes or anticipates will or may occur
in the future shall be deemed to be forward-looking statements. Forward-
looking statements are inherently subject to risks and uncertainties, many of
which cannot be predicted with accuracy and some of which might not be
anticipated. Future events, actual results of performance, financial or
otherwise, could differ materially from those set forth in or contemplated by
the forward-looking statements herein. Readers are cautioned not to place
undue reliance on these forward-looking statements, which speak only as of the
date hereof. Regency undertakes no obligation to release publicly any
revisions to these forward-looking statements that may be made to reflect
circumstances after the date hereof or to reflect the occurrence of
unanticipated events. The inclusion of any statement in this press release
does not constitute an admission by Regency or any other person that the
events or circumstances described in such statement are material.
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SOURCE Regency Affiliates, Inc.