OXFORD, Miss., April 20, 2005 (PRIMEZONE) -- Modern Technology Corp. (OTCBB:MOTG), a diversified Business Development and Acquisition company, with reported assets and revenues in excess of $17 million, released today a periodic stockholder update and guidance for 2005.
In 2004, MOTG announced its assets and revenue projections to be $15MM. The company has not only met, but exceeded that projection. As reflected in the company's most recent Form 8K/A, assets and revenues exceed $17MM. As of June 30, 2004, MOTG revenues exceed $10,000,000. As of January 25, 2005, MOTG's cash position was $617,587 and total assets of $7,012,631 and positive a Shareholder Equity of $1,466,499 with approx. 15,000,000 shares issued and outstanding and only approximately 1,200,000 shares in the public float. The company 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 cash flow revenue for MOTG. Further, MOTG entered into an agreement with four institutional investors, who provided MOTG with $3.5 million in financing
MOTG is in negotiations with several additional acquisitions. We will announce these acquisitions as they occur. The additional expected revenue and assets from these acquisitions exceeds $15,000,000. We anticipate closing these acquisitions bringing MOTG revenues and assets around or above $25MM -- $35MM around mid-year 2005.
MOTG anticipates another $25,000,000 in revenues and assets from further anticipated 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 some of the requirements for listing on Nasdaq or AMEX.
Anthony Welch, Chairman said, "In 2004 we achieved the listing of our common stock, declared a cash dividend and exceeded our revenue and asset projections of $15MM. Our rapid growth model combines complementary businesses to reduce costs and enhance revenue. We work to create shareholder equity with stable, strong assets and revenues. We focus on this paradigm and as our regulatory filings and overall progress to date clearly demonstrate, we deliver results."
With the transactions we have closed, plus the anticipated closing of the ones under consideration, we expect 2005 revenue of between $25 million and $50 million. With transactions under consideration for the second half of 2005, we expect 2005 revenue could be between $50 million and $75 million. The Company cautions 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 our ability to successfully complete the acquisitions.
About Modern Technology Corp.
Founded in 1982, Modern Technology Corp. is a diversified 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.
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