MANDEVILLE, La., May 26, 2015 /PRNewswire/ -- ORPHEUM Property, Inc. (OTC: PLFF), a diversified public company, with interests in the hospitality industry, coffee and food products, property development, and other markets, today updates its shareholders on processes and procedures being put in place by ORPHEUM's new leadership to improve operations and financial control of this Company and its growing business units.
Jeffrey B. Montalbano, the Company's Chairman, CEO and CFO, has been overseeing the business of the Company since March 23, 2015, and is now in the process of implementing changes that he believes will prove essential to the success of this diversified business. Mr. Montalbano's comments follow:
"I hereby remind our shareholders that effective April 27, 2015 ORPHEUM was upgraded to trade as an OTC Pink Current Information provider, and our financial information is now maintained on a current basis on the OTC Markets trading platform.
Since taking charge as CEO of the Company I have been going through the analysis and evaluation of processes and procedures that I believe must be understood and managed for any diversified company such as ours to function and gain control of its destiny. ORPHEUM already has operating business units based in Honolulu, Hawaii, New Orleans, Louisiana, and Hattiesburg, Mississippi, and our growth strategy will surely result in continued diversification and geographic locations of our business units.
Our primary business unit updates are as follows:
- Coscina Brothers Coffee Company, based in Honolulu and established in 1978, is a roaster and purveyor of the finest Hawaiian coffee brands and other food products to a wide market in the Asian-Pacific region and the West Coast of the United States. This business unit appears to be well run, has a positive cash flow and exhibits good growth potential for the Company.
- Rare Cuts - Gourmet Meats, located in New Orleans, LA. This is a specialty high-end butcher shop established in 2009, with the goal of bringing the 'Highest Quality, Most Tender & Flavorful, Aged Meats Available Anywhere' to the retail consumer.
In line with the success of its first location and the desire to grow Rare Cuts, this business unit had taken the step in February of this year to open a '2nd location' in the Lakeview neighborhood of New Orleans. Upon analysis and financial review of this expansion decision and results to date, I recently had to take the tough decision to close the '2nd location' for good business reasons. New expansion locations may well be in the future of the business, but financial success of any such expansion must be beyond doubt.
- We informed our shareholders last month that during the first quarter of 2015 the Company had acquired a 128 guestroom La Quinta hotel complex that was rebranded as the MAGNUSON Hotel of Hattiesburg in Mississippi. Upon review of the Hotel acquisition arrangement I became aware that prior management of the Hotel did a deed in Lieu and I exercised that right for them to take over with a buy back provision if we felt we could overcome some issues that came along with the property that we were not aware of earlier. I will update shareholders on this situation as it unfolds.
- Accounting and Financial Management Procedures: We have put the following accounting and financial procedures in place so as to bring our business assets under strong control of the Company's leadership:
1. By the 15th of each month the Company's business units are required to submit detailed financial accounting reports on the prior month's business income and expenses.
2. Effective July 1, 2015 each of the business units is required to pay five percent (5%) of gross sales for the prior month to "corporate", with such funds to transfer from the business unit to the corporate account no later than the 15th of the month.
3. Quarterly, each business unit of the Company will be evaluated by the Board of Directors, and decisions will be made as to progress, strategies and tactics to maximize growth of the business units.
4. No mortgage or borrowing commitments will be made by any of the business units without ratification and approval of the Board of Directors.
5. No equity-based transactions will be allowed by the corporation or its business units without ratification and approval of the Board of Directors.
6. Business units are responsible to maintain and execute, when required, all licenses, insurances of business unit assets, and must pay all taxes incurred by the business unit before anything else is paid.
I am pleased with the progress of the Company to date. In addition, I am working on three new acquisition opportunities and upon Board review and approval over the next month or so, will be announced to our shareholders."
About ORPHEUM Property, Inc.
ORPHEUM Property Inc. ("ORPHEUM") specializes in the acquisition, development, and management of businesses and commercial properties worldwide. ORPHEUM accomplishes its acquisitions through a variety of funding scenarios including stock/equity sales, private investments and traditional lending sources. The company will utilize its vast experience in hospitality, food and beverage, real estate, finance, and accounting to execute on its business plan. ORPHEUM will benefit from limited overhead in its initial stages of development allowing the company can run with minimal G&A expenses, thus allowing it to reinvest in growth.
ORPHEUM (OTCPINK: PLFF) trades on the OTC Markets trading platform, and utilizes the OTC Disclosure & News Service in order to make all current information and disclosures available to the public. Investors can find real-time quotes and market information at:
Statements herein express management's beliefs and expectations regarding future performance and are forward-looking and involve risks and uncertainties, including, but not limited to, raising working capital and securing other financing; responding to competition and other risks. Actual results may differ materially from such forward-looking statements.
SOURCE ORPHEUM Property, Inc.