LAS VEGAS, March 14, 2006 (PRIMEZONE) -- The Board of Directors of Consumer Direct of America (OTCBB:CSUA) announced today its intention to pursue the distribution of all of the Company's shares of common stock of Paragon Financial Corporation (OTCBB:PGNF) to holders of the Company's common stock. As of the date hereof, the Company owns 80% of Paragon's common stock which is comprised of 592,775,580 shares of PGNF common stock. The distribution contemplates issuing approximately six shares of Paragon stock for every one share of Consumer Direct stock held by CSUA shareholders as of the record date.
The Company intends for the distribution to be tax free for the Company's shareholders, and the distribution will be completed only if the Company receives a favorable opinion of counsel confirming the distribution's tax free status. The distribution is also subject to other conditions including necessary regulatory approvals.
In the distribution, the Company will distribute all of its shares of Paragon common stock on a pro-rata basis to the holders of the Company's common stock on the record date of the distribution. The number of shares of Paragon common stock to be received by each of our shareholders, the record date for the distribution, and the date of the distribution have not been determined. We intend to provide this and other information to our shareholders at such time as the conditions to the distribution, including SEC and other necessary regulatory approvals, have been satisfied.
About Consumer Direct of America
Consumer Direct of America (OTCBB:CSUA) is a publicly traded holding company for emerging growth businesses. Emerging as a national leader in mortgage banking/ brokerage and ancillary services, the company sold its mortgage operations earlier this year and is focused on opportunities in the energy field.
Statements in this press release other than statements of historical fact, including statements regarding the company's plans, beliefs, and estimates as to projected results and market size are "forward-looking statements." Such statements are subject to certain risks and uncertainties, including factors listed from time to time in the company's SEC filings, and actual results could differ materially. These forward-looking statements represent the company's judgment as of the date of this release. The company disclaims, however, any intent of obligation to update these forward-looking statements.