Company Sells Titan PCB East to Management Led Buy-Out Team in Effort to Refocus Efforts on Energy and Communications Divisions
June 02, 2008
Titan Global Holdings, Inc. (Pink Sheets:TTGL), a high-growth diversified holding company, today announced that Titan PCB East, Inc., the Company's wholly owned subsidiary, reached a definitive agreement with Time Sensitive Circuits, a management led buy-out team, to acquire substantially all of the assets of Titan PCB East. Denis McCarthy, an executive at the Company's Titan Electronics Group Division, is the lead investor from Time Sensitive Circuits ("TSC").
Under the terms of the definitive agreement, TSC will assume or repay the Titan PCB East's debt with Greystone Business Credit and certain other liabilities. The parties anticipate a closing date within thirty days. >From this day forward, Mr. McCarthy will manage Titan PCB East through the closing.
Titan PCB East will not sell its interest in Coesen, Inc., a company that owns certain intellectual property used by the electronics industry. In addition, Titan is exploring opportunities to acquire other businesses after the closing with TSC.
Titan's Electronics Division includes Titan PCB East, Inc., Titan West Inc., and NEO EMS, Inc. East and West specialize in the manufacturing of advanced circuit boards and other high tech products for military and high-tech clients. Titan PCB East holds the 31032 manufacturing certification from the U.S. Department of Defense. NEO EMS manufactures custom circuit board products for a variety of industries including aerospace, defense contractors and alternate energy equipment producers.
Previously Titan's Board of Directors authorized a definitive strategic plan to spin-off Titan's Printed Circuit Board manufacturing business to its shareholders, creating a new, independent public entity. While Titan hasn't abandoned these plans, Titan PCB East's business won't be a part of any such plan as its assets will be sold.
"Given the size and focus required of East's business, we concluded that it was best served and owned by its management team," said Bryan Chance, President and Chief Executive Officer of Titan Global Holdings. "Denis is uniquely qualified to lead this effort. Further, he won't have to endure the cost and burden of being public as we have in the past. We have no current plans to sell Titan West or NEO EMS."
"This is an exciting event for our management led buy-out team, our customers, suppliers, and our loyal employees," said Denis McCarthy, President and Chief Executive Officer of Time Sensitive Circuits. "We are committed to the preservation of jobs in the Northeast and we will work hard to build a stronger business. We will work to quickly close this acquisition."
"Consistent with our recently announced corporate vision and initiatives, we concluded that Titan PCB East's business hadn't achieved the financial results we sought and lacked the potential to achieve them in future periods," David Marks, Chairman of Titan Global Holdings. "Titan East's business model is better served by an owner-operator. We have every expectation Denis and his group will be successful."
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 and distribution.
Titan's operating divisions include the following:
The Titan Global Energy Division owns and operates traditional and next-generation renewable energy and fuel assets that can provide significant opportunities for growth in one of the world's largest and most critical markets.
Titan's Communications Division serves the communication needs of those individuals that have emigrated from their host country to the United States or other countries and plans to addresses a range of high-growth markets in the international telecommunication segments, including communication technology, platform management, international wholesale communication and the distribution of prepaid international telecommunication products.
Titan Global Brands designs, develops, and distributes consumer products from value categories to high end branded categories, through its existing distribution channels and new ones suitable for such products. Together, it integrates, protects and expands its consumer brand management capabilities to leverage and optimize growth across Titan's worldwide distribution channels.
Titan Card Services plans to capitalize on the burgeoning multibillion-dollar international prepaid money transfer sector. Titan Card Services' proprietary technology provides for convenient and efficient international money transfers.
Titan's Electronics and Homeland Security Division includes Titan PCB East, Inc., Titan Electronics Inc., and NEO EMS, 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.
For investor-specific information and resources, visit http://www.trilogy-capital.com/tcp/titan/ or http://www.b2i.us/irpass.asp?BzID=1314&to=ea&s=0.
To view current news, visit http://www.trilogy-capital.com/tcp/titan/quote.html. To view an investor fact sheet about the company, visit http://www.trilogy-capital.com/tcp/titan/factsheet.html.
Forward-Looking Statements
Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995 -- With the exception of historical information, the matters discussed in this press release are forward-looking statements that involve a number of risks and uncertainties. The actual future results of TTGL could differ significantly from those statements. Factors that could cause actual results to differ materially include risks and uncertainties such as the inability to finance the company's operations or expansion, inability to hire and retain qualified personnel, changes in the general economic climate, including rising interest rates and unanticipated events such as terrorist activities. In some cases, you can identify forward-looking statements by terminology such as "may," "will," "should," "expect," "plan," "anticipate," "believe," "estimate," "predict," "potential" or "continue," the negative of such terms, or other comparable terminology. These statements are only predictions. Although we believe that the expectations reflected in the forward-looking statements are reasonable, such statements should not be regarded as a representation by the Company, or any other person, that such forward-looking statements will be achieved. We undertake no duty to update any of the forward-looking statements, whether as a result of new information, future events or otherwise. In light of the foregoing, readers are cautioned not to place undue reliance on such forward-looking statements. For further risk factors see the risk factors associated with our Company, review our SEC filings.
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