Minneapolis, MN (PRWEB) May 03, 2012
WHY USA Financial Group, Inc. (Pink Sheets: WUFG), a publicly traded financial services company headquartered in Minneapolis, MN (the “Company”), in conjunction with White Russian, LLC, headed by Ms. Kachina Krafchow and her management team are executing on a well thought out plan of reorganization for existing shareholders and debt-holders. White Russian along with current management have established a path for positioning the Company’s capital structure for further investment and achieving a clean balance sheet moving forward. Further details of this arrangement are included in the Company’s Form 8-K filed on April 4, 2012 with the Securities Exchange Commission (the “Commission”).
The restructuring plan includes seeking the conversion of approximately $6.0 million in debt of the Company into equity, and resetting the issued and authorized stock of the Company in line with being a publicly traded company and being more favorable with institutional financing sources and the broader investment community. In addition, the Company is incorporating a profitable and growing business operation in the residential rehabilitation and resale in the southern California marketplace. Furthermore, as part of a staged $3.25 million growth financing plan, the Company has closed on the first $250,000 in equity capital from private investors. White Russian and the Company seek to raise an additional $3.0 million to further expand its residential rehabilitation and resale operations in the next 6 to 12 months to take advantage of the current trend for these types of properties, and to meet increasing demand in the southern California market. The note and loan conversion to equity, the resetting of the issue and authorized common stock, as well as the additional financing are subject to the approval and acceptance of the board of directors, due diligence, filing an information statement with the Commission, as well as the approval and acceptance by a majority of shareholders of the Company. The Company as of this date has closed on the purchase of its first residential rehab property as well as received the confirmation of more than 75% of the debt to be converted into equity.
About WHY USA Financial Group, Inc.
WHY USA under the management of White Russian, LLC serves as a holding company which provided mortgage banking and real estate services through its wholly owned subsidiaries; Discover Mortgage, TCS Mortgage, TCS Realty and WHY USA North America, Inc. a national real estate franchise company. These subsidiaries provided services to homebuyers, home sellers, real estate brokers and their agents, as well as homebuilders. We currently offer real estate franchise sales, support and training for the owners and agents of the franchisee network. For additional information on WHY USA, please visit the Company’s website at http://www.whyusa.com/.
Statements made about our future expectations are forward-looking statements and subject to risks and uncertainties as described in our most recent filings made with the US Securities and Exchange Commission, and are subject to change at any time. Our actual results could differ materially from these forward-looking statements. We undertake no obligation to update publicly any forward-looking statement.
SOURCE: WHY USA Financial Group, Inc.
CONTACT: Kenneth Yonika, CPA 760-579-1088
WHY USA Financial Group, Inc.