SALT LAKE CITY, July 17, 2020 (GLOBE NEWSWIRE) -- Capital Financial Global, Inc. (OTC Pink: CFGX), announced today that it has rescinded its merger with Affiliated Funding Corporation and is exiting the invoice factoring business to avoid potential losses and market risk associated with the economic impact of COVID-19.
“What began as an incredibly good opportunity in invoice factoring quickly began to look like we were walking straight into an economic trap,” said Paul Edward Norat, CEO of Capital Financial Global. “By unwinding the merger with AFC and getting out of the invoice factoring business this early we truly believe we are dodging a bullet.”
“We are only now beginning to see the true economic effects of COVID-19 as it ripples through multiple layers of overlapping industries and throughout vertically integrated value chains,” continued Mr. Norat. “We do not want to be holding invoices receivable on businesses that are themselves holding invoices receivable, on yet more businesses that are in turn holding even more invoices receivable, and so on. It is a cycle that we do not want to get caught-up in. We do not want to become bogged down in collections and loss mitigation. This is our chance to rip the band-aid off and walk away relatively unscathed and move on to greener pastures while we still can.”
“The short-term objective for us now is to refocus on our core real estate lending activities where sub-pockets of opportunities are still available, despite COVID-19,” continued Mr. Norat.
Disclosures can be found on the Company’s website and its online disclosure portal at:
About Capital Financial Global, Inc.
Capital Financial Global, Inc. (CFGX) is a specialty finance company that offers asset-backed financing and loan advisory services.
Our Market Positioning & Differentiation
Unlike traditional banking models, CFGX offers organizations needed liquidity by using an asset-backed approach rather than a traditional credit approach to originating new loans, buying and selling existing loans, and converting distressed collateral into cash or trade-able form.
Our Revenue Model
We seek revenue from loan fees, interest rate spreads on loans and investments we hold, and margins on loans and investments we sell in whole or in part to institutional investors, hedge funds, or other secondary market participants. We also seek revenue by charging loan servicing fees, and fees for other finance related consulting engagements.
Statements in this press release relating to plans, strategies, economic performance and trends, projections of results of specific activities or investments, and other statements that are not descriptions of historical facts may be forward-looking statements. Forward-looking information is inherently subject to risks and uncertainties, and actual results could differ materially from those currently anticipated due to a number of factors, which include but are not limited to, risk factors inherent in doing business. Forward-looking statements may be identified by terms such as "may," "will," "should," "could," "expects," "plans," "intends," "anticipates," "believes," "estimates," "predicts," "forecasts," "potential," or "continue," or similar terms or the negative of these terms. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. The company has no obligation to update these forward-looking statements.