PENNINGTON, N.J., April 19, 2010 (GLOBE NEWSWIRE) -- On April 16, 2010, Leeward Group, Inc. ("LEEWARD"), a Delaware Corporation, specializing in commercial and residential insurance, has signed a non-binding letter of intent which contemplates a proposed reverse merger with Principle Security International, Inc. ("PRINCIPLE" OR "PCPZ") (OTCBB:PCPZ).
Under the terms of the non-binding LOI, LEEWARD would acquire 65% of the outstanding common stock of PCPZ, pursuant to the contemplated merger exchange agreement. Following the closing of the anticipated merger, LEEWARD would emerge as the surviving company with a name and symbol change to follow.
In addition, PCPZ shareholders would retain approximately 35% of the new company's outstanding shares upon completion of the anticipated merger. The merger is subject to a number of conditions, including the signing of a definitive merger agreement, which is anticipated to be completed by the end of May, 2010, the completion of financing arrangements between the two parties, and positive final due diligence results reported on behalf of both parties.
Commenting on the potential merger, LEEWARD's CEO Kevin M. Coughlin, stated: "After successfully growing our business over the past few years, I believe that the next logical step in our corporate development is to have our stock quoted for sale in a public market. The greater access to capital and overall visibility afforded by operating as a publicly traded entity can play a significant role in our ability to expand both through acquisition and the organic growth of our existing business."
About Leeward Group, Inc.
The Leeward Group is a full-service insurance agency and consulting firm serving the insurance needs of thousands of commercial and residential clients throughout the United States. In addition to their retail insurance operations, they specialize in creating and administering exclusive insurance programs for associations and their members. In addition Leeward also operates an alternative risk management program which includes reinsurance and captive arrangements.
Forward-Looking Statements
This release contains forward-looking statements, including, without limitation, statements concerning our business and possible or assumed future results of operations. Our actual results could differ materially from those anticipated in the forward-looking statements for many reasons including: our ability to continue as a going concern, adverse economic changes affecting markets we serve; competition in our markets and industry segments; our timing and the profitability of entering new markets; greater than expected costs, customer acceptance of our products or difficulties related to our integration of the businesses we may acquire; and other risks and uncertainties as may be detailed from time to time in our public announcements and SEC filings. Although we believe the expectations reflected in the forward-looking statements are reasonable, they relate only to events as of the date on which the statements are made, and our future results, levels of activity, performance or achievements may not meet these expectations. We do not intend to update any of the forward-looking statements after the date of this document to conform these statements to actual results or to changes in our expectations, except as required by law.