OXFORD, Miss., March 10, 2005 (PRIMEZONE) -- Modern Technology Corp. (OTCBB:MOTG), a business development and acquisition company, released today guidance and financial projections for 2005.
With the company's recent acquisitions, MOTG revenues exceed $9,000,000 as of today. MOTG recently added to its asset base a $1.5 million Convertible Debenture in Demarco Energy Systems of America, Inc. (Pink Sheets:DMES). Converting this debenture adds another $1,500,000 in revenue for MOTG. Further, MOTG entered into an agreement with four institutional investors, who provided MOTG with $3.5 million in financing.
MOTG is currently in late-stage negotiations with several additional acquisitions. The company intends to announce these acquisitions in the coming weeks. The expected revenue from these acquisitions under closing exceeds $15,000,000. We anticipate closing these acquisitions, bringing MOTG revenues to $25,000,000 by mid-year 2005.
MOTG anticipates another $25,000,000 in revenues from further acquisitions before end-of-year 2005, bringing MOTG projected revenues to $50,000,000.
MOTG believes closing an additional $25,000,000 in revenues beyond its current projections is possible and has set a year-end goal of $75,000,000 for 2005.
To enhance investor liquidity and promote institutional participation, MOTG intends to apply for a listing on a larger stock exchange as soon as is practicable. MOTG already meets many or most of the requirements for listing.
Anthony Welch, Chairman said, "In less than one year, we have gone from nominal revenues and operations to over $9MM in revenues with another $15,000,000 in late-stage negotiations now. We anticipate closing these acquisitions soon. Our rapid growth by acquisition strategy combines synergistic and revenue enhancing companies to create significant shareholder equity and stable, strong revenues. In addition, the company frequently declares both stock and cash dividends. Our last cash dividend was in March of 2004, in fact. Creating stockholder returns is our focus. We are focused on this paradigm and continue to deliver results."
Mr. Welch added: "Going forward, we would like to provide guidance to our current and prospective shareholders. With the transactions we have closed, plus the anticipated closing of the ones under consideration now, we expect calendar 2005 revenue of between $25 million and $50 million. With transactions under consideration for closing during the second half of 2005, we expect 2005 revenue could be between $50 million and $75 million. I caution shareholders and potential shareholders that this guidance is our best, good faith estimate based on current conditions and numerous assumptions about the industry, our access to financing, the competitive and regulatory landscape and, particularly for the second set of guidance, our ability to successfully consummate the acquisitions we are pursuing. I anticipate updating our shareholders on at least a quarterly basis regarding our expectations."
About Modern Technology Corp.
Founded in 1982, Modern Technology Corp. is a business development and acquisition company, building revenues by strategic acquisitions and subsequent market expansion. MOTG provides infrastructure, intellectual capital, strategic investments, and ongoing support and growth assistance to each company within its portfolio. MOTG provides mentoring and assistance through collective operations experience, significant industry contacts, and strategic and tactical advice. The company's mission is to consistently build shareholder equity through accretive acquisitions, to continue its history of stock and cash dividends, and to create and promote synergistic relationships among portfolio companies and affiliates. For more information, visit the company's web site at: http://www.moderntechnologycorp.com.
Safe-Harbor Statement
This press release contains statements (such as projections regarding future performance) that are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those projected as a result of certain risks and uncertainties, including but not limited to those detailed from time to time in the Company's filings with the Securities and Exchange Commission.