IGSM Repositions Company Within the Short Line Railroad Industry; Changes Name
to Continental Rail Corp. and Announces Reverse Stock
FT. LAUDERDALE, FL -- (Marketwired) -- 07/31/13 -- 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
rights-of-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 comp
any'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.
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