LONDON, Feb. 28, 2005 (PRIMEZONE) -- CorpHQ Inc. (Pink Sheets:COHQ) today announced the organization of a new business unit, CorpHQ U.K. Ltd., to be located in Weybridge, Surrey, United Kingdom.
A primary objective of the new business unit will be to organize and fund a UK Venture Capital Trust ("VCT") to fund new portfolio companies in the UK, and to create vehicles to develop European markets for CorpHQ's US portfolio companies.
VCTs were introduced in the UK in 1995 to encourage individuals to invest indirectly into the small and medium, albeit higher-risk, company sector. Tax relief is available for eligible investors, which include an income tax deduction of 40% in relation to VCT shares issued in the tax years 2004-05 and 2005-06 up to an annual investment limit of 200,000 pounds. In addition, no capital gains tax is payable on disposals in VCT shares. Dividends are not subject to further tax in the hands of the investor and capital gains made on the VCT investment are tax free. Investors must hold the VCT investment for at least three years to avoid losing the tax relief.
Steve Crane, CEO of CorpHQ said, "The British Government has taken significant steps to encourage the growth of small business by supporting legislation and policies that have led to the implementation of the VCT structure and the continued strong growth of the Alternative Investment Market of the London Stock Exchange for smaller growing companies. Nowhere have we found better vehicles for capital formation, within an established and well developed market, than in the United Kingdom."
The Company further announced the appointment of Clive R. Morris, as Managing Director of CorpHQ UK Ltd. Mr. Morris has an extensive background and history of success in entrepreneurship and management, having served as owner and Managing Director of xstreammedia PLC for over fifteen years.
"Steve Crane and I have been close friends for over twenty years," said Clive Morris. "While on holiday last year, we discussed the possibility of my joining CorpHQ. At the time I was happily retired, but Steve is a rather persistent fellow. Subsequent discussions about the capital formation environment in the UK led me to research the VCT structure and become more familiar with CorpHQ. I was very impressed in both instances."
Mr. Morris added, "We will pattern CorpHQ UK after the US model, as a business incubator building quality companies from the ground up. While we are organizing the VCT, our two offices will work hand in hand to develop UK markets for our existing portfolio and partner companies, and to evaluate incubation projects in the UK. I have already begun to assemble a team of professionals who have the necessary experience in raising capital for and managing VCTs, and feel confident that this objective will be achieved during the 2005 fiscal year."
In addition to Mr. Morris's appointment, CorpHQ has retained London law firm Teacher Stern Selby as corporate legal counsel for CorpHQ. Partner David Salisbury and assistant Simon Holden will be advising the company. Mr. Holden said, "We are very pleased to continue our relationship with CorpHQ and look forward to helping the team build a successful platform in the UK."
Steve Crane added, "Clive is a driven and competitive individual, with a powerful business network in the UK. I can think of no better person to lead our UK operation and I am humbled and honored that he would leave a well-earned retirement to jump back into business with CorpHQ."
About CorpHQ, Inc.
CorpHQ Inc. operates as a holding company and business incubator; we organize, invest in, and provide comprehensive management support and a variety of resources to high-potential companies. CorpHQ also acquires interests in and provides consultation to selected companies that are synergistic with its portfolio companies.
CorpHQ provides periodic Voluntary Financial Reports on its operations at http://www.pinksheets.com/quote/finance.jsp?symbol=COHQ.
Forward-Looking Statements "Any statements made in this press release which are not historical facts contain certain forward-looking statements, as such term is defined in the Private Litigation Reform Act of 1995, concerning potential developments affecting the business, prospects, financial condition and other aspects of the company to which this release pertains. These forward looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results of the specific items described in this release, and the company's operations generally, to differ materially from what is projected in such forward-looking statements. Although such statements are based upon the best judgments of management of the company as of the date of this release, significant deviations in magnitude, timing and other factors may result from business risks and uncertainties including, without limitation, the company's dependence on third parties, general market and economic conditions, technical factors, the availability of outside capital, receipt of revenues and other factors, many of which are beyond the control of the company. Although we believe that the expectations reflected in the forward looking statements are reasonable, we cannot guarantee future results, levels of activity, performance, or achievements. Moreover, neither we nor any other person assumes responsibility for the accuracy and completeness of such statements, and we disclaim any obligation to update information contained in any forward-looking statement."
This press release is available at www.corphq.com and http://www.pinksheets.com/quote/quote.jsp?symbol=COHQ.