Smart Choice Automotive Group Announces $4 Million Financing For Expansion Program
7 October 1997
Smart Choice Automotive Group Announces $4 Million Financing For Expansion Program; Joseph Mohr Joins Company as Chief Financial Officer
TITUSVILLE, Fla., Oct. 7 -- Smart Choice Automotive Group,
Inc. today announced a $4 million financing for its expansion
program. The financing will be provided through investment funds advised by
Promethean Investment Group, LLC, a New York City based fund management group.
Immediate funding in the amount of $3 million has been provided through
the placement of 7% redeemable convertible preferred stock, while an
additional $1 million will be available to the Company in the future. "These
funds will primarily be used to expand Smart Choice's network of new and used
automobile dealerships," commented Fred Whaley, Executive Vice President of
Smart Choice Automotive Group, Inc.
Mr. Whaley also announced that Joseph Mohr has joined Smart Choice
Automotive Group as Chief Financial Officer, after serving as a consultant to
the Company for several months. His previous experience in the Financial
Services industry included positions as a Senior Auditor with Arthur Anderson
& Company, an Operational Specialist with Heller Financial in its Financial
Services Group, and a Merger/Financial Specialist with Gemini Consulting. Joe
has an MBA from the University of Chicago, a BS in Accounting from DePaul
University, and is a CPA.
Fred Whaley, who was previously the Company's Chief Financial Officer, has
assumed the new position of Executive Vice President, Corporate Finance, where
he will continue to be involved in financial management, while assuming
additional responsibilities involving acquisitions, consolidation and
profitability analysis.
"We are pleased to welcome Joe Mohr to the Smart Choice executive team,"
commented Gary R. Smith, President and Chief Executive Officer of the Company.
"His experience in operational accounting and mergers will be instrumental in
the consolidation of new and used car dealerships under the Smart Choice
umbrella. Meanwhile, Fred Whaley, who has extensive experience in the
Financial Services industry, will become more involved with our acquisition
program, which is critical to the achievement of Smart Choice's strategic
objectives."
Mr. Whaley joined Smart Choice in March 1997, after spending 16 years as
Managing Director of Corporate Finance for Raymond James & Associates, Inc., a
national investment banking firm, where his responsibilities included public
and private offerings, mergers and acquisitions, and the management of
operating assets for the benefit of Raymond James' clients.
Smart Choice Automotive Group, Inc. operates 19 new and/or used car
dealerships throughout the State of Florida. The Company also underwrites,
finances and services retail installment contracts generated from the sale of
used cars by its dealerships. Smart Choice currently operates in the
following Florida markets: West Palm Beach, Orlando, Stuart/Ft. Pierce, and
Tampa/St. Petersburg. Through wholly-owned subsidiaries, the Company also
provides training, insurance and financial consulting services to unaffiliated
automobile dealerships throughout the United States. Its Eckler Division is
one of the nation's largest aftermarket distributors of Corvette parts and
accessories and services over 95,000 customers.
The Company is headquartered in Titusville, Florida and its common stock
trades on Nasdaq under the symbol "SMCH".
Forward-looking statements in this release are made pursuant to the "safe
harbor" provisions of the Private Securities Litigation Act of 1995.
Investors are cautioned that actual results may differ substantially from such
forward-looking statements. Forward-looking statements involve risks and
uncertainties including but not limited to, continued acceptance of the
Company's products in the marketplace, competitive factors, the availability
of credit lines to finance customer purchases, and other risks detailed in the
Company's periodic report filings with the Securities and Exchange Commission.
SOURCE Smart Choice Automotive Group, Inc.
