LAS VEGAS, June 9, 2006 (PRIMEZONE) -- Shearson Financial Network, Inc. (OTCBB:CSUA), a consolidator in the highly fragmented mortgage brokerage marketplace, announced today that it reached an agreement to acquire certain assets of EHomeCredit, Inc. (EHC). Under the agreement, Shearson will issue to EHC's shareholders shares of common stock of Shearson valued at three million dollars ($3,000,000). In addition, the company will pay $ 1.7 million in structured payments to EHome over the next twenty four months.
EHomeCredit, Inc. is a mortgage banker located in Garden City, New York, and is a provider of residential mortgages in multiple states. The company employs 200 people, who are residential mortgage professionals in ten branch locations. The agreement allows Shearson to acquire the mortgage branch network of EHC and the monthly production of approximately $35 million. EHC's annual revenue for 2005 was in excess of $14 million. EHC will be changing its name to Shearson Home Loans and will integrate into the company's central operations center in Mellville, New York. Dean Hartman, EHC's Chief Operating Officer, will assume the role of President for the mortgage subsidiary of Shearson. Mr. Hartman, together with Mr. McHugh, the Chief Operating Officer, are the new senior managers of Shearson Home Loans going forward. The mortgage companies recently acquired by Shearson had combined revenue for FY 2005 in excess of $25 million.
"The business combination of Continental, EHomeCredit and Shearson into the Shearson family of mortgage operations creates a strong national company and a steady experienced team to meet the great opportunity we have as a mortgage brokerage consolidator," stated Dean Hartman, Shearson Home Loans' incoming President.
"The addition of EHC into the Shearson family of companies gives us a much stronger management team and increased production revenue," states Michael Barron, Shearson's CEO. "This transaction anchors our operations team and allows us to move forward on our planned consolidation strategy."
About Shearson Financial Network, Inc.
Shearson Financial Network, Inc. (www.shearsonhomeloans.com) is a consolidator of the highly fragmented mortgage brokerage and real estate services industry. The company business strategy is to acquire mortgage brokerage businesses in strategic locations throughout the U.S. The company is licensed in thirty nine states and now employs in excess of 700 people.
SEC Filings and Forward-Looking Statements
Certain information contained in this announcement are "forward-looking statements." Shearson 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 Shearson. 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 Shearson is contained in the Company's Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission.