By a News Reporter-Staff News Editor at Obesity, Fitness & Wellness Week -- Capstone Financial Group, Inc. (OTCBB: CAPP) ("Capstone") announced that it has agreed to invest $57 million in Twinlab Consolidation Corporation through a private offering (see also Capstone Financial Group, Inc.).
The 3-year agreement struck between the two companies allows Capstone to purchase shares of Twinlab Consolidation Corporation common stock directly and provides for the purchase of additional shares of common stock through the exercise of warrants during that time. Under the agreement, Capstone's total investment in Twinlab Consolidation Corporation equals $57 million in cash and represents an ownership stake of just over 38 percent.
"We are determined to build the best franchise in Health & Wellness and we have laid out a clear plan to deliver long-term shareholder value," said Twinlab Consolidation Corporation Chief Executive Officer Tom Tolworthy. "I am confident that we have the capital and liquidity we need to run our business. At the same time, I also recognize that Capstone's large investment in us is a strong endorsement of our vision and our strategy."
"Twinlab Consolidation Corporation is a strong, well-led company and we called Tom to tell him we wanted to invest in it," said Capstone Financial Group, Inc. Chairman and Chief Executive Officer Darin Pastor. "We are impressed with the future profit-generating abilities of this franchise, and that they are acting aggressively to make strategic acquisitions to capitalize on the fast growing Health and Wellness industry. Twinlab Consolidation Corporation is focused on consolidating this fragmented, yet ever expanding industry, and we see the value of the company's strategy."
"This initial investment by Capstone sets the framework for Twinlab Consolidation Corporation to acquire Twinlab and two related Health & Wellness companies," added Capstone Financial Group, Inc. President and Chief Investment Officer George Schneider. We are also prepared to support Twinlab Consolidation Corporation in its future acquisitions."
Keywords for this news article include: Wellness, Investment and Finance, Capstone Financial Group Inc..
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