AUSTIN, Texas, Sept. 23, 2011 /PRNewswire/ -- Westech Capital
Corp. (WTEC:PK), parent company to Tejas Securities Group, Inc.
("Tejas"), today announced the completion of the sale of
$8,475,000 of Series A Preferred
Stock (the "Series A Shares"). The funds will be used to
expand the firm's capital and product offerings. Lead
investors in the financing include John J.
Gorman IV, current Chairman of Westech, and James B. Fellus, an experienced Wall Street
executive, who will be joining Westech as CEO. In conjunction with
the announcement, Mr. Fellus noted "I am very excited to join the
senior management team and I believe there is a tremendous
opportunity to expand the Company's services in sales, trading and
investment banking."
As part of the new capitalization, Westech announced additional
changes in its executive team. Specifically, Robert Halder, currently Director of Analytics
at Tejas, will now also assume the role of President of Westech.
Mr. Halder added "This transaction helps to give us the resources
we need to execute on our growth strategy, expanding the platform
with both capital and key personnel." Mr. Gorman, who will remain
as Chairman, commented "We are extremely pleased to complete this
transaction under these market conditions. We have assembled an
extraordinary team of experienced and talented industry executives
and professionals and look forward to leveraging our combined
strengths to create significant long term shareholder value."
Under the terms of the Series A Shares, a cumulative dividend
will be paid at 7% per annum of the purchase price, as and when
declared by the Board of Directors of Westech. The 339 Series A
Shares which were purchased at a price of $25,000 per share shall be convertible into a
total of 8,475,000 shares of common stock of Westech at any time at
the option of each holder. The Series A Shares shall automatically
convert into shares of Common Stock, and the Company shall cause a
sufficient number of its shares of Common Stock to be registered
sufficient for such conversion upon (i) the registration with the
Securities and Exchange Commission of the shares of the Company's
common stock into which the shares of Series A Shares shall be
convertible, pursuant to the Securities Exchange Act of 1934, as
amended; and (ii) twenty consecutive trading days of the common
stock of the Company trading at a price per share of at least
Three Dollars ($3.00).
The Company's Board of Directors approved the sale of the Series
A Shares after receiving an opinion from a third party investment
banking firm that the transaction involving the sale of Series A
Shares was fair from a financial point of view to the holders of
the Company's common stock. The sale of the Series A Shares
was also approved by the holders of a majority of the Company's
outstanding shares of common stock who did not purchase Series A
Shares.
Company Information
Westech Capital Corp., formerly Tejas Incorporated, is a
financial services holding company. Its primary business operating
subsidiary is Tejas Securities Group, Inc. Tejas Securities
Group, Inc. is a full service, independent Broker-Dealer founded in
1994 with offices in Austin, TX,
New York City, N.Y., Chicago, IL and Los
Angeles, CA. The Company offers brokerage and
investment banking services to a wide range of clients. The
Company's core services include (i) analysis of distressed and high
yield corporate debt, high yield municipal bonds, mortgage-backed
securities and special situation securities, (ii) trading and other
brokerage services to value-based institutional and retail
investors active in fixed income and equity instruments, and (iii)
corporate finance and strategic advisory services to middle-market
companies within the Company's target industries. To learn more
about Tejas Securities Group, Inc., please visit its web site at
http://www.tejassec.com.
Safe Harbor Statement
This press release contains forward-looking statements within
the meaning of federal securities laws. Actual results are subject
to risks and uncertainties, including both those specific to the
Company and those specific to the industry, which could cause
results to differ materially from those contemplated. The risks and
uncertainties include, but are not limited to, general economic
conditions, actions of competitors, changes in legislation, and
technology changes. Undue reliance should not be placed on the
forward-looking statements, which speak only as of the date of this
press release. There are many important factors beyond the
control of the Company's management that could cause actual results
to differ materially from such forward-looking statements.
The Company does not undertake any obligation to publicly
update any forward-looking statements.
SOURCE Westech Capital Corp.