VANCOUVER, British Columbia, Dec. 13, 2004 (PRIMEZONE) -- Pinnacle Developments Inc.(Pink Sheets:PNCV) --
Acquisition Strategy
Pinnacle Developments Inc. (Pink Sheets:PNCV) has released details of its strategy for aggressive expansion of the company over the coming year. Pinnacle will be actively investigating suitable opportunities to merge with or acquire existing operations to create a more fully integrated resource company.
The Company is seeking existing operations in the resource sector with a minimum of three years financial statements and proven earnings of $100,000 per year plus. Thus far, Pinnacle has identified two companies that meet these and other key criteria. Companies One and Two respectively have earnings of $4,000,000 and $100,000 per year. Together, these two companies have the potential to grow to a combined earnings total of $14,065,000 over the next twelve months. In addition another two companies have also been identified with earnings in the range of $2,300,000 per year.
Pinnacle Developments Inc. is actively negotiating with these companies to ascertain the possibilities for merger or acquisition. Letters of Intent are currently in various stages of negotiation with companies One and Two. Taken together the resulting estimated average capitalization of Pinnacle Developments Inc. would equal $250,000,000. Successful completion of these negotiations could significantly bolster the company and its share value.
As part of its overall corporate strategy, Pinnacle Development's management team will always seek to minimize expenses since the money saved goes directly to profits. However, the company's ongoing success also depends on its continuing to secure strategic business opportunities. Pinnacle Developments needs to be adequately financed to take advantage of such opportunities therefore additional expenses may be incurred related to these activities. Thus far the efforts to find and finance such opportunities have been handled by its officers, directors and legal counsel. Securing and financing business opportunities may also require however, the engaging of outside advisors or consultants. In the event that Pinnacle requires additional funding, the two main options would be a public sale of Pinnacle Development's securities or to borrow from a commercial or private lender. There can be no assurance that Pinnacle Developments Inc. will be able to obtain additional funding when and if needed, or that such funding, if available, can be obtained on terms acceptable to Pinnacle Developments.
About Pinnacle Developments Inc.
Pinnacle focuses on acquiring established value added resource companies primarily in the wood fibre industry.
For further information contact Investor Relations at 604 657 9040.
This press release contains statements, which may constitute "forward-looking statements" within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those contemplated by such forward-looking statements. Important factors currently known to management that could cause actual results to differ materially from those in forward-statements include fluctuation of operating results, the ability to compete successfully and the ability to complete before-mentioned transactions. The company undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results.