AUBURN HILLS, Mich., June 14, 2010 (GLOBE NEWSWIRE) -- LBO Capital Corp. (Other OTC:LBOA), a Colorado corporation ("LBO Capital"), today announced signing a Definitive Agreement on June 11, 2010 with WAM Holdings, LLC, a Georgia limited liability company ("WAM Holdings"), to provide consulting and structured finance services. The Agreement's purpose is to arrange financing for operations and commercialization of LBO Capital's intellectual properties.
WAM Holdings, together with Solvenz Group Limited Series LLC ("Solvenz Group"), a Delaware company, will structure, identify and underwrite collateral satisfactory to a structured offering. A unique blend of senior life settlement backed notes will complement LBO's expansion of existing technologies and incubation of new technologies. LBO will be finalizing terms of the offering circular to present to qualified and institutional investors early this summer.
The planned raise will consist of $250,000,000 zero coupon life settlement secured notes. WAM Holdings together with SEEC, Inc., a Delaware company, will provide advice, planning and management to the LBO Expansion Fund, once capitalized. LBO Capital will issue 6,802,382 stock warrants, which is 19.5% fully diluted, to be held in escrow for the benefit of WAM Holdings and Solvenz Group pending the sale of notes. Each warrant will be equivalent to one share of common stock, strike price will be $0.0001 per share, and expiry June 9, 2020. The LBO Expansion Fund will pay an industry standard annual management fee to SEEC and Solvenz Group for packaging, underwriting and administering the LBO Expansion Fund and Solvenz Growth Fund.
Steven Wilbert, Managing Director of WAM Holdings, stated: "This is a cooperative strategy to blend actuarial science to the risk of venture capital. We feel this structure will allow LBO to capitalize its intellectual ventures while providing a solid collateral strategy to its note holders."
LBO Capital's Chairman, Thomas W. Itin, commented, "Recently, raising operating capital for small cap companies has been extremely difficult. By acquiring the solid asset class collateral of life settlement policies to back up our expansion funding, LBO Capital anticipates being able to move more quickly to finance its inventory of intellectual properties and ideas."
LBO Capital Corp., founded in 1987, and its subsidiaries, Global Tech International, Inc., Advanced Digital Components, Inc., Ecoplastifuel, Inc. and Load Hog Industries, Inc., strive to acquire proven and attractive intellectual property and technology, and to capitalize on them through licensing arrangements with operating companies which recognize benefits from access to carefully selected assets of LBO Capital Corp.
The LBO Capital Corp. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=5971
The statements included in this news release, concerning predictions of economic performance and management's plans and objectives constitute forward-looking statements made, pursuant to the safe harbor provisions of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1934, as amended. These statements involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Factors which could cause or contribute to such differences include, but are not limited to, factors detailed in the Company's Securities and Exchange Commission filings, economic downturns affecting the operations of the Company or any of its business operations, adequate financing to achieve the new strategic plans, the impact of competition, the success of products in the marketplace and the unavailability of financing to complete management's overall plans and objectives. The forward-looking statements contained in this news release involve subjects only as of the date hereof and the Company disclaims any intent or obligation to update these forward-looking statements, except as required by law.