CLIENT: LORACA INTERNATIONAL, INC. CONTACT: Bernard Guy, President (206)
CLIENT: LORACA INTERNATIONAL, INC.
CONTACT: Bernard Guy, President
Loraca International Completes Acquisition of Loan Origination, Servicing
and Insurance Operations Facility
Company Merges with The Lexus Companies, Inc., and Its Wholly-owned Subsidiary
Calumet Securities Corporation
Seattle, WA, April 17, 2000--Loraca International, Inc. (OTC/BB: LCAI), an
emerging business-to-business e-finance services holding company, today
announced the completion of the merger with The Lexus Companies, Inc., and its
wholly-owned subsidiary, Calumet Securities Corporation, a mortgage banking and
insurance firm located in Schererville, Indiana. The purchase price was 377,778
shares of Loraca International, Inc. common stock and $2.3 million of floating
rate convertible subordinated notes. The transaction will be accounted for as a
"We are please to announce the acquisition of The Lexus Companies and its
wholly-owned subsidiary, Calumet Securities Corporation," commented Ron Baca,
Chairman and CEO of Loraca International, Inc. "Calumet will be an integral part
of our growing internet mortgage operation as a platform to fund and service
loans that Loraca and its subsidiaries originate. Loraca will be better able to
maintain and expand relationships with our growing customer base. In addition,
Loraca's technology creates cost savings opportunities for Calumet which should
enhance the value of their business."
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.
Loraca International, Inc. is an emerging business-to-business e-finance
services holding company providing web-enabling technology to firms involved in
the mortgage industry.
Statements made in this news release that are not historical facts are
forward-looking information. Actual results may differ materially from those
projected in any forward-looking information. Specifically, there are a number
of important factors that could cause actual results to differ materially from
those anticipated by any forward looking information. Those factors include, but
are not limited to, changes in technology and product acceptance, regulatory
approval processes, ability of Loraca to successfully integrate the acquired
businesses, and general economic conditions. Additional information on these and
other factors which could affect the Company's financial results are included in
its Securities and Exchange Commission filings.
NOTE: Transmitted on BusinessWire at 12:22 p.m. PST, April 17, 2000.