Ofek Capital Shows Over $3,200,000 Increased Assets in Its Audited Consolidated Annual Financial Statement
TORONTO--April 9, 2002--Ofek Capital Corp. (Pink Sheets:OFCC) announces the issuance and submission to SEDAR, the System for Electronic Document Analysis and Retrieval for public securities fillings at http://www.sedar.com, of its audited consolidated annual financial statement for its October 31, 2001 yearend.Assets increased from $645,889.00 to $3,895,344.00 and Shareholders' Net Equity increased from $642,422 to $1,529,444.00 as a result of Ofek's acquisition of AJM Leasing, Ofek's used car leasing subsidiary.
Revenues and operating losses reflected in these consolidated statements are derived almost exclusively from loan originations generated through Northern Pacific Funding Group. Northern ceased operating as of October 2001. Revenues generated by AJM Leasing will be reflected only within the financial statements for the fiscal periods starting November 1, 2001.
Revenues for AJM Leasing most recent annual fiscal period prior to its acquisition by Ofek are stated at CDN$1,980,571.00 with Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) of 48%.
Management expects AJM to expand its Revenues at a rate of over 25% annually for the foreseeable future.
Management also announces that as a result of a fundamental breach by Pentium Financial Group, Inc. of Jerusalem, Ofek terminated its association with Pentium. As a result of this termination, Ofek will recover and cancel 680,000 shares of Ofek originally issued to Pentium from treasury.
About Ofek Capital
Ofek Capital is a North American financial services company that operates within the sub prime lending and financing market. Ofek has identified the sub prime market as the most lucrative niche in the financial services industry.
Ofek Capital subsidiaries include: AJM Leasing, Mortgage Bankers of North America, and SecondaryMarkets.
| -- | Ofek leases used cars through its Ontario subsidiary, AJM Leasing. |
| -- | Mortgage Bankers of North America, a California subsidiary, anticipates offering traditional mortgage banking services in 24 states. |
| -- | SecondaryMarkets, a California subsidiary is developing a proprietary, patent pending, automated submission and lending approval software system. It will be state of the art and capable of generating immediate loan approval from multiple loan providers. |
This release contains forward-looking statements within the meaning of Section 21E of the Securities and Exchange Act of 1934, which reflect management's expectations regarding Ofek's future growth, results of operations, performance and business prospects and opportunities. These statements reflect management's current beliefs and are based on information currently available to management. Forward-looking statements involve significant risks, uncertainties and assumptions. A number of factors could cause actual results, performance or achievements to differ materially from the results discussed or implied in the forward-looking statements.