EXHIBIT 99.01
CARGO CONNECTION LOGISTICS HOLDING, INC. SIGNS LETTER AGREEMENT TO ACQUIRE
FLORIDA-BASED FLEET GLOBAL SERVICES, INC.
ACQUISITION EXPECTED TO ADD UP TO $25 MILLION IN ANNUAL REVENUES -
EXPAND CAPABILITIES
INWOOD, NY, September 5, 2007 - Cargo Connection Logistics Holding, Inc.
(OTCBB:CRGO - Berlin:CD6.BE - Frankfort:CD6.F & 217026) today announced it has
signed a Letter Agreement to acquire Orlando, Florida-based Fleet Global
Services, Inc. from Mack Fulmer. The Company expects that Fleet, a non-asset
based carrier company and considered to be the cornerstone of Fulmer Logistics'
Carrier Division, of which Fleet was once a subsidiary, will add up to
approximately $25 million in revenue to Cargo Connection. The Company expects
that when the acquisition is completed, the combined business will have
anticipated annual revenues in excess of $50 million in 2008. In addition, the
Company expects synergies that will be accomplished through the addition of
Fleet will favorably impact the Company's operating profitability.
According to the terms of the Letter Agreement, upon closing the Company will
pay $1 million in cash, issue 270 million shares of restricted common stock and
issue additional shares valued at 10% of the EBITDA of the Company's new Fleet
division for a two-year period. The transaction is subject to certain due
diligence, financing and other conditions to closing. The Company expects to
close the transaction by October 31, 2007 if it is successful in raising at
least $1,500,000 in additional capital and the other conditions to closing are
satisfied.
"As a non-asset based carrier Fleet offers a vast pool of reliable
owner/operators that will greatly benefit from our advanced technology and
resources," said Jesse Dobrinsky, Chairman and CEO of Cargo Connection Logistics
Holding, Inc. "This acquisition will significantly expand our domestic
capabilities and provide the Company with a more substantial financial
foundation."
Dobrinsky said that Fleet currently has in excess of one thousand customers and,
along with its internal staff, eleven independent agents that handle their
business.
"We expect that this acquisition will provide immediate access, through cross
marketing, to more than one thousand potential new customers for Cargo
Connection's services that heretofore have been unavailable to the Fleet
customer base," added Dobrinsky. "This also should provide a major boost to
our Independent Transport Group, LLC subsidiary (ITG)."
About Cargo Connection Logistics Holding, Inc.
- ----------------------------------------------
The Company, through its subsidiaries Cargo Connection Logistics Corp. and Cargo
Connection Logistics - International, Inc., is a leader in world trade
logistics. The Company headquarters is in Inwood, NY, and it also has offices
in Atlanta, GA; Charlotte, NC; Chicago, IL; Columbus, OH; Miami, FL; New York,
NY; Pittsburgh, PA; and San Jose, CA. Headquartered adjacent to JFK
International Airport, the Company is a transportation logistics provider for
shipments imported into and exported out of the United States, with service
areas throughout the United States and North America. The Company currently
provides a comprehensive variety of transportation and warehouse capacity
services to shippers throughout the nation. It also operates a bonded General
Order warehouse at JFK International Airport and Container Freight Station
operations, which are specifically designed to handle internationally arriving
freight for major retail suppliers through its facilities in Florida, Georgia,
Illinois, New York and Ohio.
Cargo Connection Logistics' website is www.cargocon.com.
----------------
Future-Looking Statements Safe Harbor
- -------------------------------------
The Private Securities Litigation Reform Act of 1995 provides a "safe harbor"
for forward-looking statements. Certain of the statements contained herein,
which are not historical facts, are forward-looking statements with respect to
events, the occurrence of which involve risks and uncertainties. These
forward-looking statements may be impacted, either positively or negatively,
by various factors. Information concerning potential factors that could affect
the Company is detailed from time to time in the Company's reports filed with
the Securities and Exchange Commission, including, without limitation:
* the Company's ability to increase its revenues, including by obtaining
contacts with foreign shippers and by acquisition of competing businesses
such as Fleet Global Services, Inc.;
* the Company's financial condition, including its ability to continue as a
going concern;
* the Company's ability to operate in compliance with the terms of its
financing facilities (particularly the financial covenants);
* the Company's ability to maintain adequate liquidity and produce sufficient
cash flow to meet the Company's capital expenditure plans;
* the number and magnitude of customers;
* changes in, or the failure to comply with, government and regulatory
policies;
* the Company's ability to obtain regulatory approvals and to maintain
approvals previously granted;
* uncertainty relating to economic conditions generally and particularly
affecting the markets in which the Company operates
* the effect of the Company being in default on its indebtedness;
* the Company's ability to raise additional capital, including the $1.5 million
necessary to consummate its acquisition of Fleet Global Services, Inc.;
* the Company's reliance on key personnel and independent agents;
* the Company's vulnerability to economic and industry conditions;
* changes in the Company's business strategy, development plans or cost savings
plans;
* the Company's ability to complete acquisitions or divestitures and to
integrate any business or operation acquired;
* the Company's ability to enter into strategic alliances or other business
relationships;
* the Company's ability to overcome significant operating losses;
* the frequency and severity of accidents, particularly involving the Company's
trucking operations;
* the Company's ability to reduce costs;
* technological developments and changes in the industry;
* the Company's ability to develop products and services and to penetrate
existing and new markets; and
* changes in the competitive environment in which the Company operates.
CONTACT:
Contact:
Peter Nasca
Peter Nasca Associates, Inc.
954-473-0677 Ft. Lauderdale
312-421-0723 Chicago