Fortress Financial Group, Inc. (OTC: FFGO) recently announced the active pursuit of its stated strategy, which is to become a broad-based consumer finance products group. Negotiations to facilitate this strategy are currently taking place with significant parties. Several acquisitions are expected to take place in the near future.
The company has confirmed in-depth discussions regarding the acquisition of a small State Chartered Bank. With this acquisition, the company hopes to grow the profits from its domestic debit card program at a substantial rate, since the company – under the terms of the proposed agreement – would receive all profits from these activities. This acquisition will both allow the company to offer credit cards to the “financially challenged”, and put it in a position to offer a larger range of private labeled cards to various organizations within the U.S. Although the company does not intend to enter the banking sector, using the bank as an engine for the company’s operations will facilitate expansion of its domestic debit card operations and also allow it to introduce the “Fortress” Credit Card.
The company is also pursuing acquisitions in the Mortgage Lending Sector, focusing on companies operating in the niche where consumers’ FICO scores prevent them from obtaining mortgages. These acquisitions will be combined with a planned, large-scale acquisition of Independent Mortgage Brokers in specifically targeted areas. The company is using its strong balance sheet to acquire companies at the bottom of the economic style, and anticipates several closings of these acquisitions, after which it plans to appoint a new CEO for the Mortgage Division, as well as several additional board members.
In addition to the aforementioned acquisitions, the company is negotiating a “Captive Insurance License,” which will enable it to offer insurance services on a broad range of its existing and proposed consumer finance product portfolios. The company expects this addition to be a strong contributor to increasing earnings over the long term.
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