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 OfficerTITUSVILLE, 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.