TORONTO, Aug. 10, 2005 (PRIMEZONE) -- Ofek Capital Corp. (Pink Sheets:OFCC) announces that its deal with Kaptor Financial Inc. ("Kaptor") has closed. Pursuant to the unanimous shareholders' approval obtained on May 30, 2005, the closing took place on May 31, 2005. Certain items remained in escrow, which items have now been satisfied.
Ofek now has a 25% interest in Kaptor, valued at approximately US$1,250,000, based on Kaptor's net book value. Ofek also has an option to increase its holdings to 33% interest within 5 years.
Established in 1989 and headed by its founder Eric Inspektor, Toronto-based Kaptor is a boutique merchant banker and sub-debt lender in the small to medium-sized business arena. The various lending strategies focus primarily in the areas of accounts receivable, inventory, letter of credit and purchase order financings, small to medium-sized commercial real estate loans, and loan enhancement guarantees.
Kaptor has developed and successfully sustained the ability to bring value-added services and funding to facilitate its clients' short- and mid-term needs. Kaptor's target market niche is the 2- to 5-year-old, small to medium-sized company primarily in the manufacturing, retail and distribution businesses.
By means of its recently acquired, wholly owned subsidiary, AJM Leasing, Kaptor is also expanding its thrust in the automobile financing arena.
Ofek will now concentrate its efforts in the seeking of suitable acquisitions. Kaptor and Ofek have agreed to continue to work together to enable both to implement their respective mandates and enhance each others' operations and prospects.
About Ofek Capital
Ofek www.OfekCapital.com is a management and holding company, operating through its subsidiaries.
-- Ofek has a significant interest in Kaptor Financial Inc., an
Ontario-based financial services enterprise, providing merchant
banking and automobile financing.
-- Ofek is currently evaluating a number of equity prospects. Ofek
expects completed acquisitions to enhance its balance sheet and
shareholders' value.
This release contains forward-looking statements within the meaning of Section 21E of the Securities and Exchange Act of 1934, which reflect management's expectations regarding Ofek's future growth, results of operations, performance and business prospects and opportunities. These statements reflect management's current beliefs and are based on information currently available to management. Forward-looking statements involve significant risks, uncertainties and assumptions. A number of factors could cause actual results, performance or achievements to differ materially from the results discussed or implied in the forward-looking statements. Ofek and its management take no obligation to update or correct any or such forward-looking statements.