Pacel Corp. Raises Additional $250k for a Total of $2.5 Million for Mergers and Acquisitions
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CHARLOTTE, N.C., June 10 /PRNewswire-FirstCall/ -- Pacel Corporation (OTC Bulletin Board: PCCL) announced today that is has received an additional $250,000 dollars from Wall Street-based Compass Capital Group. This brings the total amount of capital raised for mergers and acquisitions to $2.5 Million. These funds will allow the company to implement a strategic plan for mergers and acquisitions within the PEO Industry. David Calkins, Chairman of the Board for Pacel, stated, "With the additional funds that Compass Capital Group has provided, we are very close to closing a major acquisition. The acquisition of (Rossar, LLC.) is expected to close by the end of June, 2004 and will provide an average of $11 Million annual increase in Gross Billings and approximately $ 630,000 in new revenues. This type of capital infusion will allow the company to proceed with our plan become a leading force in the PEO Industry." PEO companies are growing at a rate of greater than 20% and most experts predict this rate of growth can be sustained for 5-10 years as PEO's respond to the growing need for their services. The Small Business Administration estimates there are nearly 6 million businesses with fewer than 100 employees. These small to mid-sized businesses employ over 52 million employees with an aggregate payroll of over $1.1 trillion. It is estimated the PEO industry currently has between 2-3 million worksite employees with annual payrolls greater than $18 billion. With just 2% of the market, the growth in PEO services is unlimited. With an average annual growth rate of 20%, more and more business owners are turning to the Professional Employer Industry to provide them with the tools they need to increase productivity and profits. About Pacel Corp. Pacel Corporation provides Human Resource Outsourcing services, including benefits administration, payroll administration, governmental compliance, risk management, unemployment administration and benefits administration to small and medium-sized businesses in the United States. The statements contained in this press release that are not historical facts are forward-looking statements that involve a number of risks and uncertainties. Therefore, the actual results of future events described in such forward-looking statements could differ materially from those stated in such forward-looking statements. Among the factors that could cause actual results to differ materially are: (i) regulatory and tax developments; (ii) the effectiveness of the Company's sales and marketing efforts; (iii) changes in the competitive environment of the industry; (iv) changes in general economic conditions; (v) changes in the Company's direct costs and operating expenses; (vi) the estimated costs and effectiveness of capital projects and investments in technology and infrastructure. (vii) Management's ability to effectively implement its business strategy. These factors are described in further detail in filings with the Securities and Exchange Commission. SOURCE Pacel Corporation -0- 06/10/2004 /CONTACT: John Hopf of Wall Street Financial Network LLC, +1-212-825-7500, or info@************ , for Pacel Corporation/ (PCCL) CO: Pacel Corporation; Compass Capital Group ST: North Carolina, Virginia IN: INS OTC SU: FNC
posted
This is the part of the PR that I'm interested in: "David Calkins, Chairman of the Board for Pacel, stated, "With the additional funds that Compass Capital Group has provided, we are very close to closing a major acquisition. The acquisition of (Rossar, LLC.) is expected to close by the end of June, 2004 and will provide an average of $11 Million annual increase in Gross Billings and approximately $ 630,000 in new revenues. This type of capital infusion will allow the company to proceed with our plan become a leading force in the PEO Industry."
Once that acquisition goes through this month, wouldn't you expect an increase in pps? And we're near the yearly low, with no apparent bad news...I'll still have to do more DD to confirm this though.
posted
Not trying to rain on a parade here. It just seems so familiar. Even the wording seems like things I have heard from this company many times before. Try to dig up some old PR's from before the name change. I think this type of PR was sent many times along the way. I do NOT question the legitimacy of the PR just wondering if it will have the type of effect of the stock one might expect.
Juggleing lots of things right now. I will continue to try to dig some more. Who knows woth it being near the 52 week low. and the good PR? Who knows?
PAUL
quote:Originally posted by Smctbone: This is the part of the PR that I'm interested in: "David Calkins, Chairman of the Board for Pacel, stated, "With the additional funds that Compass Capital Group has provided, we are very close to closing a major acquisition. The acquisition of (Rossar, LLC.) is expected to close by the end of June, 2004 and will provide an average of $11 Million annual increase in Gross Billings and approximately $ 630,000 in new revenues. This type of capital infusion will allow the company to proceed with our plan become a leading force in the PEO Industry."
Once that acquisition goes through this month, wouldn't you expect an increase in pps? And we're near the yearly low, with no apparent bad news...I'll still have to do more DD to confirm this though.
GLTA
------------------ But godliness with contentment is great gain. For we brought nothing into this world, and it is certain we can carry nothing out.
posted
OLD OLD OLD OLD OLD OLD OLD ----------------------------- May 23, 2002 Pacel Agrees to Acquire Second PEO By Roy Mark
Software applications developer Pacel Corp. is continuing its aggressive acquisition strategy with the signing of its second letter of intent in a week to acquire an unnamed professional employer organization (PEO). The proposed acquisition is expected to add more than $65 million to Pacel's year-end revenues this year. PEOs provide outsourced solutions for human resource functions, such as payroll, benefits administration and support.
Earlier this week, the Manassas, Va.-based company previously announced it signed a letter of intent to acquire another unnamed $70 million PEO. Pacel expects to execute a definitive agreement on the first PEO by the end of this month. The company expects to complete its due diligence on the second PEO by mid-June and sign a definitive agreement by the end of the second quarter. Terms of the acquisition were not disclosed.
"The combination of two PEOs creates the opportunity for Pacel to benefit from economies of scale, build an immediate nationwide presence and participate in cross-marketing our products to an established and expansive client base. With Internet security issues paramount in today's corporate environment, our business complements the PEO organization, which most often processes highly-confidential information," David Calkins, chief executive officer of Pacel.
Pacel specializes in the provision of software products for clients in the commercial, industrial and government arenas.
Calkins added, "The two proposed acquisitions combined is expected to add approximately $150 million in revenues to Pacel this year and will complete the first round of our initial acquisition plans. We look forward to updating our shareholders on the progress, in addition to announcing other aggressive acquisition strategies."
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August 30, 2002 Pacel Secures $2 Million for PEO Funding By dc.internet.com Staff
Pacel Corp. has signed a term sheet to secure $2 million of funding from Compass Capital Group to execute the company's first professional employer organization (PEO) acquisition. The financing has a combined debt and equity structure, and also includes operating funds of $500,000.
The financing from Compass Capital supercedes a previously announced funding from T & B Capital, which Pacel decided not to pursue. The first PEO acquisition is expected to close within the fourth quarter.
The Manassas, Va.-based Pacel is a software development company that specializes in Internet and computer security software for home and corporate use. In April, Pacel announced it had retained OTC Financial Network, a division of National Financial Communications Corp., to direct an investor relations campaign that involved a focus on the company's acquisition program.
"We are very pleased with the terms of the funding. The shares of stock will have registration rights on the next SEC registration filing. This financing will help expedite our aggressive acquisition program that we started just a short time ago," said David E. Calkins, Pacel's CEO. "As our acquisition team prepares the closing documents for the funding and initial acquisition, we are continuing discussions with the next acquisition target and are focused on entering into a definitive agreement with another PEO shortly. We expect these acquisitions to significantly improve our bottom-line in the near future.
Calkins added, "We are also working on a roll-up of several security software and specialty hardware companies to form a best in class 'Products and Services Provider' company that focuses on Fortune 1000 and the federal government markets. With several near-term growth initiatives, and the appropriate financing in place, we look forward to growing our revenues and earnings this year and beyond."
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I hope this helps.
PAUL
------------------ But godliness with contentment is great gain. For we brought nothing into this world, and it is certain we can carry nothing out.
posted
I have been in this stock since it was the ticker symbol PACC, and I have to say I dislike it. I have lost pretty much everything I have invested in it. But to you guys that are getting it at current price, good luck, I think you might make I profit, but I don't think I will ever break even. It would have to hit around .10 for me to break even
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