Company Press Release Loraca International Signs Merger Agreement to Acquire
Loan Origination, Servicing and Insurance Operations Facility ALBUQUERQUE,
N.M.--(BUSINESS WIRE)--Feb. 14, 2000--Loraca International, Inc. (OTCBB:LCAI -
news), a financial services holding company, today announced that it ...
Company Press Release
Loraca International Signs Merger Agreement to Acquire Loan Origination,
Servicing and Insurance Operations Facility
ALBUQUERQUE, N.M.--(BUSINESS WIRE)--Feb. 14, 2000--Loraca International, Inc.
(OTCBB:LCAI - news), a financial services holding company, today announced that
it has entered into an agreement to acquire The Lexus Companies, Inc., and its
wholly-owned subsidiary, Calumet Securities Corporation, a mortgage banking and
insurance firm headquartered in Schererville, Indiana.
Under the terms of the agreement, Loraca's wholly-owned subsidiary, Loraca
Acquisition Corp. will acquire all of the issued and outstanding shares of Lexus
in exchange for shares of the common stock of Loraca and convertible
subordinated notes valued at approximately $4.3 million. The closing of the
acquisition and the transfer of Calumet Securities' mortgage, servicing and
insurance operations are subject to requisite regulatory approvals.
Calumet Securities is among the oldest continuously operating mortgage companies
in the Midwest, which received its seller/servicer approval from the Federal
National Mortgage Association (FNMA) and the Department of Housing and Urban
Development (HUD) in the 1930's. Calumet Securities originates and services
conventional and government loans, primarily in the Midwestern states, for FNMA,
FHLMC, FHA, GNMA, VA and various private investors.
"We believe that the acquisition of Calumet Securities furthers Loraca's
objective of expanding its operations nationwide with this well established and
centrally located platform. It will be an integral part of the development of
our Internet mortgage operation. By servicing the loans we originate, Loraca
will be better able to maintain and expand relationships with our growing
customer base, potentially opening additional cross-selling opportunities and
leveraging our technology. In addition, the acquisition will enable Loraca to
offer a broad variety of mortgage products, both conforming and non-prime, while
enhancing control over the loan fulfillment process," commented Ron Baca,
Chairman of Loraca International, Inc.
"The Calumet Securities acquisition is a major step for Loraca that will be the
foundation of our Internet business fulfillment strategy by utilizing this
platform to fund and service the loans we originate. We believe this combination
gives us a unique strategic advantage in becoming a premier mortgage solution
for a broad network of third party mortgage originators," commented Bernard Guy,
President of Loraca International, Inc.
"Loraca's technology creates unique solutions for third party mortgage
originators which fit perfectly with our strengths in mortgage servicing and
originations. The combination brings us access to cutting edge technology that
significantly expands our loan origination capabilities. We are extremely
pleased to merge with Loraca and feel that the combined management expertise and
operating strength of the group will enable us to create a market-leading
company," commented Paul Tufano, President of Calumet Securities Corporation.
About Loraca International, Inc.
Loraca International, Inc. is a financial services holding company. The
company's mortgage-lending subsidiary, New Mortgage Millennium Corp., is
headquartered in Lake Oswego, Oregon.
This press release contains forward-looking statements that involve potential
risks and uncertainties. These forward-looking statements are based on
information available to the Company on the date hereof, and the Company assumes
no obligation to update any such forward-looking statement. It is important to
note that the Company's actual results could differ materially from those in
such forward-looking statements due to risks and uncertainties associated with
the Company's business. Among the factors that could cause the actual results of
Loraca International, Inc. and New Mortgage Millennium Corp. to differ
materially from those indicated in such forward-looking statements are
government regulation, residential real estate values, consumer acceptance of
internet mortgages and insurance, competition, general economic conditions such
as changes in interest rates and the demand for conforming and non-conforming
loans, availability of funding, loan prepayment rates, delinquency and default
rates and changes which influence the mortgage and insurance markets generally.
These factors and other risks and uncertainties are discussed in more detail in
the Company's Registration Statement on Form 10 filed with the Securities and
Exchange Commission and in the Company's other SEC filings. Because of these
risks and uncertainties, readers are cautioned not to place undue reliance on
Loraca International, Inc.
Barney Guy, 503/670-8386