Exhibit 99.1
First Montauk Financial Corp. Signs Definitive Asset Purchase Agreement
July 14, 2008 -- Red Bank, NJ -- First Montauk Financial Corp. (OTCBB: FMFK)
announced today that it has agreed to sell certain assets of its broker-dealer
operations to First Allied Securities, Inc., an Advanced Equities Financial
Corp. company. Under the agreement, First Montauk's independent
registered representatives will be given the opportunity to join First Allied,
and First Allied will acquire the right to service the customer accounts of
those representatives that join First Allied.
First Allied has agreed to pay First Montauk thirty percent of the commission
and fee income generated by the First Montauk customer accounts serviced by the
registered representatives who become associated with First Allied. The total
value of the transaction is dependent on the amount of commission and fee income
acquired by First Allied. First Montauk's current annual commission and fee
income is estimated at $24 million. First Montauk intends to use a portion of
the proceeds of the sale to provide incentives to certain key independent
registered representatives who agree to become affiliated with First Allied. In
addition, First Allied has advanced $250,000 to First Montauk against the
purchase price.
"First Montauk has recognized the need to provide its financial professionals
and customers with a more sophisticated investment platform and a wider spectrum
of financial products to remain competitive in today's challenging financial
market. We believe our agreement today achieves these goals by giving our
financial professionals and their customers' access to First Allied's innovative
products and strategies, cutting-edge technology and superior service. First
Allied is recognized as one of the premier financial services organizations
serving independent financial professionals," stated Victor K. Kurylak,
President and Chief Executive Officer of First Montauk. Mr. Kurylak added, "We
have also acted in the best interests of our shareholders by securing additional
capital for the Company and providing value to our shareholders in this
difficult business environment."
Dwight Badger, Chief Executive Officer of Advanced Equities Financial Corp.
said, "We are excited about the opportunity to work with First Montauk's
financial professionals and their customers." Mr. Badger added, "We are
confident that our unique and differentiated product and service offerings,
business development platform and commitment to best in class service and
support will provide significant value to First Montauk's financial
professionals and their customers. We look forward to meeting with Montauk's
financial professionals and welcoming them into the Advanced Equities family."
The definitive asset purchase agreement is subject to, among other conditions,
compliance with state and federal securities laws and regulations, regulatory
approvals and the approval by the vote of the shareholders of First Montauk
Financial Corp. at a special meeting of shareholders to be scheduled. The
transaction is expected to close during the fourth quarter of 2008. As a result
of the foregoing uncertainties, there can be no assurances that the transaction
will be completed.
First Montauk Financial Group is a service mark of First Montauk Securities
Corp., Member FINRA/SIPC. First Montauk Financial Corp. is the parent company of
First Montauk Securities Corp., a registered securities broker-dealer
headquartered in Red Bank, NJ. Additional information is available at its Web
site at www.montaukfinancial.com.
First Allied Securities, Inc., Member FINRA/SIPC, is a full-service independent
broker-dealer with approximately 1,000 financial advisors in 500 locations
across the United States. First Allied is a wholly-owned subsidiary of Advanced
Equities Financial Corp., a leading provider of investment management,
securities brokerage and venture capital investment banking services through its
subsidiaries: Advanced Equities, Inc.; First Allied Advisory Services, Inc.;
Advanced Equities Asset Management; and Advanced Equities Wealth Management.
Additional information is available at www.advancedequities.com.
The Private Securities Litigation Reform Act of 1995 provides a safe harbor for
forward-looking statements. This press release may contain certain statements of
a forward-looking nature relating to future events or future business
performance. Any such statements that refer to First Montauk Financial Corp's
estimated or anticipated future results or other non-historical facts are
forward-looking and reflect First Montauk's current perspective of existing
trends and information. These statements involve risks and uncertainties that
cannot be predicted or quantified and, consequently, actual results may differ
materially from those expressed or implied by such forward-looking statements.
Such risks and uncertainties include, among others, risks and uncertainties
detailed in each Securities and Exchange Commission filing of First Montauk,
including each of First Montauk's annual reports on Form 10-K, quarterly reports
on Form 10-Q and current reports on Form 8-K. The forward-looking statements
speak only as of the date of this release. Each of First Montauk and its
subsidiaries undertake no obligation to update publicly any forward-looking
statement, whether as a result of new information, future events or otherwise.
Contacts:
First Montauk Financial Corp. Advanced Equities Financial Corp.
Victor K. Kurylak, President & CEO Joel Marks, Vice Chairman & COO
(800) 876-3672, ext. 4230 (404) 705-8808
info@montaukfinancial.com joel.marks@advancedequities.com
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