Midland TX, May 31, 2006 -- StarInvest Group, Inc. (
Symbol:
STIV:OB), is pleased
to announce that it has successfully completed its financing transaction
with Strasbourger Pearson Tulcin & Wolff, Inc. Based upon the Loan and
Security Agreement dated March 12, 2006 StarInvest Group, Inc issued a
Secured Promissory Note for a principal amount of $775,000. The Secured
Promissory Note is due on March 12, 2007, and bears interest at 8% per
annum. In consideration of loans extended to STIV, the Noteholders were
entitled to receive a total of 1,550,000 Series B Preferred Stock. The
proceeds of the Loans will be used for working capital and for the
repayment of outstanding indebtedness and claims.
Robert H. Cole, new CEO and CFO of StarInvest, stated, "This loan
represents much more than a simple injection of liquidity into the
company, it represents an injection of trust in the new management. I am
glad that we reached an agreement with sophisticated investors that fully
understand the opportunities to invest in a publicly traded Business
Development Company (BDC) like StarInvest and we intent to create value
for these investors and our shareholders by using these proceeds to
aggressively renegotiate and settle outstanding indebtedness and to revamp
StarInvest's business model. The BDC was created by Congress in 1980 with
the main purpose to encourage the flow of public capital into private
companies. In other words, StarInvest allows individual investors to
participate in private investment opportunities that before were limited
to Accredited Investors or Institutions."
About StarInvest - StarInvest Group is a Business Development Company (BDC)
located in Texas. BDCs are publicly traded, closed-end investment
companies regulated by the Investment Company Act of 1940. StarInvest
Group was founded on the premise that the magnitude and consistency of
investment returns can be significantly enhanced by combining both
operational talent and financial talent within a single private equity
investment firm. StarInvest Group has implemented a strategy to create
value for shareholders by investing in emerging companies that are
positioned for strong industry growth or have business models with strong
cash flow potential. In addition to structuring financing requirements,
StarInvest provides managerial assistance and strategic links between the
Portfolio Companies enabling them to maximize their resources for
marketing, business development, administration, public listing planning,
and realization of their goals.
About Strasbourger - Strasbourger Pearson Tulcin Wolff, Inc. is a New
York-based broker-dealer and has been a member firm of the New York Stock
Exchange since 1970. The founding partners, Samuel Strasbourger, Samuel
Pearson and Robert Tulcin were originally partners with Jack Dreyfus of
Dreyfus & Company and Dreyfus mutual funds in the 1960s. When Mr.
Dreyfus decided to leave Wall Street to look after his many charitable
interests, Strasbourger, Pearson and Tulcin left Dreyfus to form
Strasbourger Pearson & Tulcin. Several years later, the partners
merged with Wolff & Company. More recently, in 1987, Michael J.
Schumacher, Strasbourger Pearson Tulcin Wolff's current Chairman and
President, bought out the founding partners. In 1990, Strasbourger Pearson
Tulcin Wolff acquired A.M. Levine & Company, also a New York Stock
Exchange member firm, to expand the firm's lines of business in investment
banking and private client relationships.