IGSM Repositions Company Within the Short Line Railroad Industry; Changes Name to Continental Rail Corp. and Announces Reverse Stock Split
SOURCE: IGSM Group, Inc.
July 31, 2013 09:52 ET
FT. LAUDERDALE, FL--(Marketwired - Jul 31, 2013) - IGSM Group, Inc. (OTC Pink: IGSM) today announced that it has repositioned the company within the railroad industry as a publically-held short line and regional railroad holding company. As part of the shareholder-approved plan, IGSM has filed to change its name to Continental Rail Corp. ("CRC"). Under the new name, CRC plans to grow shareholder value by selectively investing in short line and regional freight railroad properties and railroad rolling stock. CRC's goal will be to provide customers with exceptional customer service through reliable, safe and efficient rail operations.
CRC's newly named management and board includes top railroad executives with extensive track records and over a century of collective railroad industry experience. The management team includes: John Marino, Jr. - Chief Executive Officer; Wayne A. August - President; and Tim Hart - Chief Financial Officer. CRC's Board of Directors includes the officers above as well as Neil Swartz - Chairman and John Marino, Sr. - Vice Chairman.
John Marino, Jr. was formerly the Director of Real Estate at Patriot Rail Corp. While at Patriot he managed and developed railroad real estate, which included industrial development as well as rightsof- way management of all easements and encroachments. Prior to Patriot, Mr. Marino was the manager of commercial real estate projects for a privately owned real estate firm, developing over ten million square feet of hotel, industrial and residential development properties throughout the Washington D.C. metro area. Mr. Marino holds a B.S. degree in International Business from American University in Washington D.C. He is also involved in many charities in Washington DC as well as the South Florida area.
A 22-year veteran of the rail industry, Wayne A. August is an accomplished executive who has successfully completed several M&A transactions during his career. Most recently, Mr. August was with Patriot Rail Corp., a leading short line holding company, for six years as Vice President of Corporate Development. While at Patriot he was responsible for the company's M&A efforts, where he was successful in consummating and integrating several rail acquisitions. Prior to Patriot, Mr. August was with short line holding company RailAmerica for 10 years, where he led the M&A, Financial Planning and Investor Relations departments. Prior to RailAmerica, he served with Class I railroad CSX Corp. for six years in the financial planning and investor relations areas. Mr. August started his rail career as a management trainee with CSX in 1991. Mr. August holds an MBA in Finance from Duke University's Fuqua School of Business and a B.S. in Materials Science Engineering from the University of Florida.
Tim Hart has over thirty years of accounting and finance experience, including 10 years with KPMG, one the world's largest international public accounting firms. Mr. Hart formed his private accounting firm in 1989. His firm consulted extensively with the RailAmerica IPO and assisted with governmental compliance. His firm also provided consulting, strategic tax planning & compliance, and acquisition audits for Patriot Rail. He has wide-ranging experience dealing with SEC and other regulatory matters, such as initial and secondary public offerings, private placements and compliance with SEC reporting requirements (Forms 10-K, 10-Q and 8-K). Mr. Hart has worked with banks, private investors and investment bankers in obtaining debt and/or equity financing. He also has significant experience with mergers and acquisitions, including transactional documentation. Mr. Hart holds B.A.'s in Accountancy, Economics and Business Administration from Thomas More College, and has been a certified public accountant since 1984.
"We are very excited about repositioning IGSM within the fast-growing short line and regional railroad industry," said Neil Swartz, CRC Chairman. "We have put together a solid management team that has been involved in the ownership or management of over 75 railroads and rail service companies worldwide. More importantly, this team has a strong track record of completing accretive rail acquisitions and delivering high multiples of invested capital for shareholders."
TBG Holdings Corp., a Ft. Lauderdale-based financial consulting firm that works with public and private companies, facilitated the repositioning of the company.
In addition, IGSM announced the acquisition of Transportation Management Services, Inc. ("TMS"), a short line and regional railroad consulting company. TMS is a Michigan based firm established in 1983 by John H. Marino, Sr. that focuses on consulting for the short line and rail freight transportation industry. TMS established key development deals and successful short line railroads in Michigan, Wisconsin, Pennsylvania and Maryland. TMS was later sold to John Marino Jr., who continued to grow and manage the business. Mr. Marino, Jr. will remain as President of TMS.
IGSM also announced that its board of directors, subject to FINRA approval, approved a 1 for 200 share reverse stock split. The record date for the reverse stock split will be set by the board of directors. Shareholders otherwise entitled to fractional shares as a result of the reverse stock split will be rounded up to a whole share in lieu of those fractional shares. Shareholders whose stock is held in brokerage accounts will receive the update automatically.
Safe Harbor Statement
The statements in this press release that relate to Continental Rail Corp.'s (CRC or the Company) expectations with regard to the future impact on the Company's results are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The results anticipated by any or all of these forward-looking statements may not occur. The Company undertakes no obligation to publicly release the result of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof, or to reflect the occurrence of unanticipated events or changes in the Company's plans or expectations.
IGSM Group, Inc.