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World Associates, Inc. Announces Agreements With BraXta Corporation Aug 17, 2006 10:33:00 AM LOS ANGELES, Aug. 17 /PRNewswire-FirstCall/ -- World Associates, Inc. ("World") (OTC: WAIV) announced today that it has entered into a strategic alliance with BraXta Corporation, a Delaware company, that resulted in two agreements. These agreements could represent a milestone in World's development if the outcomes are positive.
BraXta has established a MasterCard credit platform focused on rehabilitating credit of card users who have defaulted on their credit card debt. The program provides debtors a path for recovery and a method for reestablishing their credit. Information about the program is available on BraXta's web site located at: http://www.braxta.com.
The first agreement between BraXta and World provides that World, through a newly created entity named Credit Restoration Capital LLC ("CRC"), will provide investment capital for BraXta's MasterCard program in return for an ongoing interest in BraXta. Private investors provided funding for CRC and real estate assets controlled by World secure their investment. BraXta's credit restoration business is expected to generate consistent profits. Those profits could allow BraXta and World to consider additional investments in World's land development business in the future.
In a separate agreement between World and BraXta, BraXta agreed to purchase 10% of the issued and outstanding shares of World, or 11,200,000 shares, for five million ($5,000,000) US dollars. That equates to a share price of approximately $0.45 per share. The stock BraXta acquires will be restricted and BraXta has authorized World to report that BraXta has no plans to sell the stock at this time. BraXta intends to acquire its stock in World over the next twelve months from the profits of its credit restoration business. Since that business is important to the success of this transaction, World expects to update the public on its status throughout the year.
World and BraXta are discussing other ways to cooperate including working together to create real estate backed securities and creating further methods to expand World's land development business, among other things.
This press release contains "forward-looking statements" within the meaning of the Securities Act of 1933, as amended. Although World believes that the expectations reflected in this press release are reasonable, no assurance can be given that they will prove correct or without a material difference from what is expected. The company remains exposed to risk factors that could affect the outcome of these agreements. Those include: economic conditions, that the credit restoration business does not perform as expected and other factors.
For further information contact: World Associates, Inc. 818-991-1770 info*worldassociates.com SOURCE World Associates, Inc.
---------------------------------------------- World Associates Inc. +1-818-991-1770 info*worldassociates.com
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