Adsouth Partners (PK) (USOTC:ASPR)
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Adsouth Partners, Inc. (OTCBB:ASPR):
-- Genco continues rapid growth: Enters into contracts for total
orders valued at $2 million, an increase of over 100% since
March 20, 2006
-- Establishes commercial sales group
-- Expands sales infrastructure by opening five new sales and
service offices throughout Florida
Adsouth Partners, Inc. (OTCBB:ASPR), today provided a business
update on its majority-owned subsidiary, Genco Power Solutions
(Genco), http://www.gencopowersolutions.com, which markets, sells,
installs and services integrated power generator systems to
residential homeowners and commercial businesses throughout Florida
and the recently announced transaction wherein Adsouth will sell all
of its product brands from its consumer product portfolio to MFC
Development Corp. in a cash and stock transaction to be valued at
$9.5 million.
Genco Power Solutions Update
Once the transaction is completed, Adsouth's Genco subsidiary will
be the primary driver of the Company's Product Division. Due to
Adsouth's experience and expertise in direct response marketing, Genco
is positioned to differentiate itself compared to its competitors and
continue to expand.
As of April 14, 2006, Genco has entered into contracts for 90
orders for standby generators or approximately $2.0 million in total
orders. The approximately $2.0 million in total orders represent over
a 100% increase since Adsouth's last update on Genco on March 20,
2006. The Residential Sales Group's average order per contract is
approximately $20,960 or about $1.82 million in total orders. The
newly formed Commercial Sales Group's average order per contract is
approximately $58,866 or about $177,000 in total orders.
Genco's direct to consumer advertising program is ongoing and has
generated over 3,500 leads through April 14, 2006. The subsidiary
marketing strategy is based on a traditional direct response marketing
matrix and to date has invested $77,500 in advertising expenditures,
which calculates to the effective rate of a $22.14 cost per lead.
In order to expand the geographic penetration of the business,
Genco is opening five new sales and service offices in Florida. The
new offices will be located in Orlando, Ft Lauderdale, Naples, Tampa
and Daytona Beach. These five new offices will be a platform to add
additional value to the process of selling and servicing integrated
power generator systems and will help increase Genco's overall market
share. Management's objective is to have all the new offices opened
and operational by end of the second quarter 2006. Genco is currently
exploring the expansion of its installation and service infrastructure
by adding additional facilities in Florida.
John Cammarano, Adsouth's Chief Executive Officer commented, "This
is an exciting time at Adsouth, as Genco has established its brand and
become one of the leaders in marketing, selling, installing and
servicing integrated power generator systems in Florida. Genco is
experiencing a tremendous interest in its products and service model,
especially as the 2006 hurricane season approaches. Today, we are
focused on building a more responsive, efficient and profitable
business and the opening of these five new offices will allow Genco to
enhance service at the local level and expand sales efforts throughout
State."
Transaction Update
On April 11, 2006 Adsouth announced the signing of a Letter of
Intent wherein Adsouth will sell all of its product brands from its
consumer product portfolio to MFC in a cash and stock transaction to
be valued at $9.5 million. The transaction which is subject to a
complete due diligence, the execution of a definitive agreement and
the satisfaction of closing conditions is expected to close in the
second quarter of 2006.
Under the terms of the letter of intent, MFC Development Corp.,
through a wholly owned subsidiary NEWCO, will acquire all of the
assets of its retail distribution and product brands company Adsouth,
Inc., as well as the brands, DermaFresh, E70, and Mitsu and the
distribution rights to Simon Solutions from Adsouth for $4.0 million
in cash and $5.5 million of MFC common stock. The transaction did not
include any assets or activities related to Adsouth's majority owned
subsidiary Genco Power Solutions or the Company's Advertising
Division.
In addition, on April 11, 2006 Adsouth's Board of Directors
approved the distribution of the stock in MFC Development to all of
the Company's stockholders. Any distribution of the MFC Development
stock to Adsouth's stockholders will be subject to the registration of
the MFC Development stock pursuant to the Securities Act of 1933. The
value of the dividend to stockholders will be dependent upon the
market price of the MFC Development stock at the time of the
distribution.
Conference Call - April 20, 2006 at 11:00 a.m. ET
Adsouth will hold a conference call for investors today April 20,
2006, to discuss the update on its Genco Power Solutions subsidiary
and discuss the recently announced transaction wherein Adsouth will
sell all of its product brands from its consumer product portfolio to
MFC Development Corp. in a cash and stock transaction to be valued at
$9.5 million. Investors who would like to participate on the
conference call should call 800-811-0667 if calling within the United
States or 1-913-981-4901 if calling internationally approximately 5 to
10 minutes prior to 11:00 a.m. or access the call via Adsouth's
website at http://www.adsouthpartners.com.
There will be a playback available of the conference until May 20,
2006. To listen to the playback, please call 888-203-1112 within the
United States or 719-457-0820 internationally. The pass code is
4844732 for the replay. The call is also being webcast by ViaVid
Broadcasting and can be accessed at Adsouth's website at
http://www.adsouthpartners.com. The webcast can also be accessed at
ViaVid's website at http://www.viavid.net. The webcast may be accessed
through June 20, 2006 on either site.
About Adsouth Partners, Inc.
Adsouth Partners is a vertically integrated direct response
marketing company that generates revenues from the placement of
advertising, the production of advertisements, creative advertising
and public relations consulting services. Since mid 2004, it has
expanded its activities as it obtained the rights to products that it
markets and sells to retail outlets. Since December 2005, through a
majority-owned subsidiary, Genco Power Solutions, Inc., the Company
has been marketing integrated power generator systems to residential
homeowners and commercial business throughout Florida. A complete list
is available on our website at http://www.adsouthinc.com and a preview
of the products offered is available at http://www.dermafresh.com
Certain statements in this news release may contain
forward-looking information within the meaning of Rule 175 under the
Securities Act of 1933 and Rule 3b-6 under the Securities Exchange Act
of 1934, and are subject to the Safe Harbor created by those rules.
All statements, other than statements of fact, included in this
release, including, without limitation, statements regarding potential
future plans and objectives of the company, are forward-looking
statements that involve risks and uncertainties. There can be no
assurance that such statements will prove to be accurate and actual
results and future events could differ materially from those
anticipated in such statements. Events that may arise could prevent
the implementation of any strategically significant plan(s) outlined
above. The Company cautions that these forward-looking statements are
further qualified by other factors including, but not limited to,
those set forth in the Company's Form 10-K filing, its registration
statements and other filings with the United States Securities and
Exchange Commission (available at www.sec.gov). The Company undertakes
no obligation to publicly update or revise any statements in this
release, whether as a result of new information, future events or
otherwise.