Minority Investment in HOMS First of Strategic Growth Initiatives by Newly Formed Titan Business Development Unit
November 09, 2007
Titan Global Holdings, Inc. ("Titan") (OTCBB:TTGL), a high growth diversified holding company, today announced it has targeted untapped growth opportunities in the worldwide security and counter-terrorism industry through a substantial investment in Homeland Security Capital Corporation, (OTCBB:HOMS), a high-growth company engaged in the acquisition, development and consolidation of homeland security-related businesses.
Key Highlights of Titan's investment in HOMS:
Titan Asserts Homeland Security Capital Corporation Stock Currently Significantly Undervalued
Homeland Security Capital Corp. Management Team is Exceptional
Titan Management Cites Potential Value of HOMS' Recent Milestone Investment in Secure America Acquisition Corp
Titan Management Cites HOMS' Polimatrix Contract from State of Illinois for Portable Radiation Detector Procurement
Titan purchased 2,151,422 shares of HOMS, totaling approximately 4.99% of the company. Titan may make additional purchases or sales of HOMS common stock in the open market from time to time.
The minority investment is among the first initiatives by Titan's newly formed Business Development Unit, which Titan formed recently to capitalize on strategic and growth opportunities through direct investment or other avenues.
Kurt Jensen, Executive Vice President of the Titan Business Development unit, said the investment decision was based on analysis indicating Homeland Security Capital was significantly undervalued, following a number of successful initiatives by the HOMS leadership.
For example, Titan believes the investment community has not fully valued HOMS' recent investment of $715,000 in Secure America Acquisition Holdings LLC, the principal shareholder for Secure America Acquisition Corporation (AMEX:HLD.U), a special purpose acquisition corporation (SPAC) formed to complete a business combination with one or more operating businesses in the homeland security industry.
"Our decision to invest in HOMS was further validated after we reviewed its recently completed investment in Secure America," said Mr. Jenson. "It is our belief that this was a milestone achievement for HOMS and one the market hasn't yet valued into its common stock."
Titan management also praised HOMS' management team, led by respected industry veteran C. Thomas McMillen, HOMS' Chairman and Chief Executive Officer, as well as the compelling value proposition HOMS' current market cap represents for investors.
As consideration for its investment in HLD.U, Homeland Security Capital received through its interest in Secure America Acquisition Holdings LLC 325,000 shares of common stock of Secure America Acquisition Corporation as well as $565,000 in promissory notes. As of the close November 8, 2007, HOMS' market cap was only approximately $3 million.
"We were delighted to learn of Titan's investment into Homeland Security Capital Corporation," said Mr. McMillen. "We look forward to meeting with Titan's management team to explore how we can collaborate on matters of mutual interest which can lead to the creation of shareholder value for both companies. Further, we look forward to attracting other strategic and institutional investors into Homeland Security Capital."
Mr. McMillen added, "Homeland's recent investment in Secure America Acquisition Holdings is part of our ongoing effort to target investments indicative of our homeland security consolidation strategy. This builds on the successful completion of the first homeland security SPAC, Fortress America Acquisition Corporation, in which our team served as principals. I believe investors will show continued interest in such business combinations. The homeland security industry provides products and services that are experiencing high growth due to government and industry focus on security threats. We are excited to be on the leading edge of SPAC initiatives within this dynamic arena."
"Our investment in Homeland Security Capital Corporation is consistent with the mandate of Titan's Business Development Unit and represents an opportunity for Titan to achieve gains from the eventual sale of HOMS common stock," said Bryan Chance, President and Chief Executive Officer of Titan Global Holdings. "I look forward to meeting with Tom to explore how we may collaborate on other opportunities for both of our companies."
About Titan Global Holdings
Titan Global Holdings is a diversified holding company with a dynamic portfolio of subsidiaries spanning international telecommunications, electronics and homeland security, consumer products and energy resources. Through our nine wholly-owned subsidiaries, we take advantage of valuable synergies between our subsidiaries to maximize revenue growth, internal development and strategic acquisitions. In fiscal 2006 Titan generated in excess of $109 million in revenues on a consolidated basis and projects fiscal 2008 revenues up to $747 million. Titan's operating divisions include the following:
Titan's Telecommunications Division addresses a range of high-growth markets in the telecommunications, wireless and mobile segments. Companies include Oblio Telecom, Inc., the second largest publicly-owned company focused on the international prepaid telecommunications segment, StartTalk, Inc., Pinless, Inc., Titan Wireless Communications, Inc. and Ready Mobile.
The Titan Global Energy Division aggregates traditional and next-generation energy and fuel assets that can provide significant opportunities for growth in one of the world's largest and most critical markets.
Titan Global Brands integrates, protects and expands brand management capabilities to leverage and optimize growth across Titan's worldwide distribution channels. We own or manage more than 100 brands that are distributed through efficient, overlapping and expansive distribution channels.
Titan Card Services capitalizes on the burgeoning multibillion dollar international prepaid money transfer sector. The Card Services division provides a seamless brand extension for Titan's growing family of prepaid products, currently sold through a nationwide network of more than 71,000 retailers.
Titan's Electronics and Homeland Security Division includes Titan PCB East, Inc. and Titan PCB West, Inc. These companies specialize in the manufacture of advanced circuit boards and other electronic products for classified military and defense department customers, and other high-tech clients.
For more information, please visit: www.titanglobalholdings.com or http://www.b2i.us/irpass.asp?BzID=1314&to=ea&s=0.
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