The Automotive Resource Network Holdings, Inc. CEO, Kathleen Roberton is pleased to announce that ARNH is making significant progress in adding value to its balance sheet. ARNH is in the final stages of negotiations to acquire several profitable enterprises as wholly owned subsidiaries, for Convertible Preferred Stock. Much more information will be forthcoming on these companies as ARNH moves to closure on each of these agreements.
This approach of acquiring many different companies and/or buying debt or equity securities in different issuers is consistent with the New Direction of ARNH. The goal is to become a 1940 Investment Act Company, or appropriately be defined as a Business Development Corporation. This is by far the best move in order to insure that each individual that has made a financial investment to date, either in common shares or preferred shares has the best opportunity going forward. ARNH is hosting an important conference call today on Monday, May 6, 2013 at 2:00 p.m. Pacific Time / 5: 00 p.m. Eastern Time to further clarify how we intend to protect common shareholders in this new and dynamic direction for ARNH.
The live call will include a moderated Q&A, after the prepared remarks. The dial-in telephone number for the live audio is as follows:
North America: 1.605.475.6700 Access Code 728728#
Kathleen Roberton, CEO, The Automotive Resource Network Holdings Inc., states: “The New Direction of ARNH will make us leaner and meaner. We understand that part of building shareholder value, is committing to enhance shareholder equity. We intend to enhance not only our balance sheet, by aggressively pursuing profitable enterprises, through forward acquisitions or asset purchase agreements, but we also plan on being proactive with our disclosure requirements and our obligation to answer shareholder inquiries. A top priority for ARNH will be to host more frequent shareholder conference calls to appraise and clarify the progress being made with our stockholders. We have been derelict in those duties in the past, and understand that in order to repair shareholder confidence, we must have a constant informative dialogue with our shareholder base. We have also committed not to file for a Reverse Split with FINRA, until we can justify that the price would warrant the reverse as it mirrors the value of the audited consolidated financial statements. Any future RS, a subject of dialogue, will be selected to provide our newly found shareholders of record (many being our past common shareholders who have suffered loss) the opportunity to be part of a registration statement with the SEC. Additionally, the pivotal part to becoming a BDC, which for us is the right move to make for the following reasons: a BDC holds the Officers & Directors to a higher standard, increases the size of the board, while positioning our enterprise as a dividend and equity opportunity. Our goal is to pay our Convertible Preferred Stockholders cumulative dividends on a quarterly basis, so as to eliminate the threat of repetitive dilution under the New Direction.
Kathleen Roberton further states, “Management has removed almost $500,000 of affiliated debt from the balance sheet and over $100,000 in non-affiliate debt. Previously, our note holders converted their debt in order to receive payment; moving forward this will not be permitted outside a registration statement. We now have increasing equity and negligible debt on the balance sheet. In order to become a BDC it is a prerequisite to have our debt to equity ratio below 50%, which we now meet. In addition, we have already made some acquisitions, and will be making more focusing on a much diversified portfolio, another requirement of a BDC. Our objective moving forward will be to acquire existing profitable private companies, through convertible preferred instruments and pay dividends to the shareholders. We have the contacts to add and book the value, and we now have the expertise to parlay that value into shareholder equity.”
We look forward to any further inquiries from our stockholders. For more information, please send your questions to ARNH.corporate.services@gmail.com if you cannot participate on today's conference call.
About The Automotive Resource Network Holdings Inc.:
The Automotive Resource Network Holdings, Inc. is newly emerging as a holding company targeting the acquisition of undervalued, niche companies with high growth potential, income-producing commercial real estate properties and high return investments all designed to pay a dividend to our shareholders.
FORWARD-LOOKING STATEMENT
ARNH cautions that statements made in this press release constitute forward-looking statements, and not guarantees of future performance, and actual results or developments may differ materially from projections in the forward-looking statements. Forward-looking statements are based on estimates and opinions of management at the time the statements are made.
Contact:
Kathleen Roberton
tel:(212)-634-7470
SOURCE The Automotive Resource Network Holdings, Inc.