Message #10 From:
Stock News Bot Date: August 17, 2006 09:50:00 AM
FMFK News First Montauk Financial Corp. Shareholders Approve Merger
RED BANK, N.J.--(BUSINESS WIRE)--Aug. 17, 2006--First Montauk Financial Corp. (OTCBB: FMFK) announced that shareholders representing 98.2% of the shares voting at today's special meeting approved the proposed merger with an affiliate of Investment Properties of America, LLC, a privately owned, diversified real estate investment and management company. Upon the completion of the transaction, each holder of First Montauk common stock will be entitled to receive $1.00 per share in cash.
The merger is subject to other conditions, including all regulatory approvals. The transaction is expected to close during the fourth quarter of 2006. However, as a result of the foregoing conditions, there can be no assurances that the transaction will be completed.
Commenting on the proposed merger Victor K. Kurylak, President and Chief Executive Officer stated, "We are pleased our shareholders have overwhelmingly approved this transaction. The change in ownership combined with a significant capital infusion will help us continue the progress we have made over the past two years as we strive to become the leaders of the independent segment of the brokerage industry. We have begun the process of seeking regulatory approval and we will make every effort to fulfill the wishes of our shareholders and complete this transaction in a timely manner."
First Montauk Financial Corp. is the parent company of First Montauk Securities Corp., a registered securities broker/dealer headquartered in Red Bank, New Jersey. First Montauk conducts securities brokerage, insurance, investment banking and advisory business and has approximately 290 registered representatives and services over 50,000 retail and institutional accounts, which comprise over $3.2 billion in customer assets.
Investment Properties of America, LLC (IPofA) is a full-service, investment and management company grounded in its philosophy of creativity, diversity, consistency and integrity. IPofA acquires, owns and operates properties, primarily leased to major national and regional retail companies under net leases.
Montauk Financial Group is a service mark of First Montauk Securities Corp., Member NASD/SIPC. First Montauk Financial Corp. is the parent company of First Montauk Securities Corp., a registered securities broker/dealer headquartered in Red Bank, NJ, with approximately 50,000 retail and institutional accounts. The Company's ability to offer quality support services, research, web-based information systems and a competitive commission payout structure has attracted approximately 290 independent, professional registered representatives across the country. Additional information is available at the Company's website at www.montaukfinancial.com.
Statements contained in this news release regarding expected financial results of the Company and First Montauk Securities Corp., are forward-looking statements, subject to uncertainties and risks, many of which are beyond the Company's control, including, but not limited to, market conditions, interest rate and currency fluctuations, dependence on key personnel, each of which may be impacted, among other things, by economic, competitive or regulatory conditions. These and other applicable risks are summarized under the caption "Factors Affecting Forward Looking Statements'' in the Company's Form 10-Q for the second quarter ended June 30, 2006, as filed with the Securities and Exchange Commission. Forward-looking statements by their nature involve substantial risks and uncertainties. As a result, actual results may differ materially depending on many factors, including those described above. The Company cautions that historical results are not necessarily indicative of the Company's future performance.
