Penny Stock News
Company Confirms It Is Taking a Stand on the Company's Investments in Hunt Gold Corporation
Jul 29, 2008 2:13:00 PM
NEW YORK, NY -- (MARKET WIRE) -- 07/29/08 -- Fortress financial Group, Inc. (PINKSHEETS: FFGO) notes that Hunt Gold Corporation has issued a Press Release today which states that Fortress Financial Group, Inc. is playing "hard ball" with them and that they are very likely subject to a takeover bid.
Alan Santini, the CEO of the Company, confirms that "the other good news for our stockholders is that the Company has managed today to repurchase a substantial amount of stock in the market, based on the current price weakness." Full details of these repurchases will be announced in the morning.
Alan Santini can now confirm that he has served notice upon the Board of Directors of Hunt Gold Corporation; as well as the representatives of certain Investment Groups as follows:
1. Hunt Gold Corporation announced that certain Investment Groups had obtained voting rights over 51% of the Company's outstanding stock. They did not, however, acquire the actual stock, just the voting rights.
2. These Investment Groups believed an immediate solution was to resolve the huge difference in the trading price of Hunt Gold Corporation's stock and its NAV per share was to dispose of the Company's interests in "American Molygold" and to utilize an amount of US$10,000,000 of these proceeds to effect a stock repurchase.
3. These Investment Groups failed to factor into account that Fortress Financial Group, Inc. held an amount of circa 483 million shares which are now eligible to have their restrictive legend removed and become "free trading," effectively doubling the "free float."
4. These Investment Groups have been attempting to "low ball" us attempts to purchase our Investment in Hunt Gold Corporation, a situation that we will not tolerate.
5. We have now elected to play "hard ball" with these Investments Groups and refused to accept a price of less than an amount of 2 cents (US$0.02) per share for their shares of this Company's stock. This effectively kills the planned stock buyback in the amount of US$10 million of Hunt Gold Corporation's shares of Common Stock as planned by these Investment Groups. This amount will no longer be sufficient with Fortress Financial Group, Inc.'s stockholding of "free trading" stock. Fortress Financial Group, Inc. holds an additional amount of 1,363,588,873 restricted shares of Hunt Gold Corporation's shares of Common Stock.
6. We have stated very clearly that we are seriously contemplating further purchases of Hunt Gold Corporation's stock, at what we view as "bargain basement prices" in the market, thereby increasing our Company's "free trading" stockholding in Hunt Gold Corporation. We have made it extremely clear that we will refuse to sell these additional shares of their stock, purchased in the market; at price of less than 2 cents (US$0.02) per share.
7. The CEO of Fortress Financial Group, Alan Santini, currently serves as Company Secretary to Hunt Gold Corporation. He has tendered his resignation as Company Secretary with immediate effect, citing conflicts of interest.
Alan Santini, the CEO of Fortress Financial Group, Inc., commented that he was "quite happy to put Hunt Gold Corporation in play to ensure that the best price could be obtained for this Company and that all serious bidders for Hunt Gold Corporation would serve our Company's interests as well those Fortress Financial Group, Inc. stockholders who received stock in Hunt Gold Corporation as a Stock Dividend." Alan Santini added that "Hunt Gold Corporation chooses to see our actions as militant. I see it very differently. I call it maximizing stockholder value for our Company, our stockholders and for Hunt Gold Corporation stockholders."
Alan Santini is very happy to go on record with this statement to Hunt Gold Corporation that he "will not rest until stockholder value in that Company is maximized and if means a Takeover battle, then so be it. Stockholder interests come ahead of these self serving Investment Groups who have not purchased stock to obtain voting control but simply made promises to obtain this voting power; which I now doubt that they can meet."