Littlefield reports institutional investment
20 March 2008
AUSTIN, Texas -- (PRESS RELEASE) -- Littlefield Corporation (OTCBB: LTFD) announces that it has agreed to sell $7,000,000 in value or 5,190,568 shares of its common stock to funds affiliated with Value Fund Advisors, LLC of Tulsa, Oklahoma. The transaction will close within ten (10) days.
The transaction was priced at a ten percent (10%) premium to the five (5) day average closing price or $1.3486 per share.
The transaction is subject to certain agreements and restrictions which will be covered more thoroughly in a subsequent SEC Form 8K filing. Among the agreements are:
1. Littlefield Corporation will expand its Board of Directors from five (5) members to six (6) members and Value Fund Advisors may nominate two of the directors annually through 31 December 2012.
2. Value Fund Advisors will not sell any of its common stock holdings before 31 December 2012.
3. Value Fund Advisors will vote its shares in support of all propositions recommended by the Board to the Company's shareholders in Annual Meeting proxy materials through 31 December 2012.
The funds will be used by the Company for general corporate purposes and to fund its ambitious growth plans in Texas, South Carolina and Florida. This funding together with cash on hand, proceeds from anticipated dispositions, operating cash flow and an anticipated $4,000,000 acquisition line of credit will provide over $12,000,000 for the Company to fund its growth.
Jeffrey L. Minch, President and CEO of Littlefield Corporation made the following comment:
"We are excited by the confidence shown in Littlefield Corporation by Value Fund Advisors through this investment. In addition to the obvious benefit of being able to fund our ambitious expansion plans this relationship provides us with access to financial expertise and sound counsel to assist us in the execution of our growth plans.
This economic strength is particularly timely as perceived weaknesses in the economy will undoubtedly provide extraordinary opportunities for near term growth which can only be capitalized upon through the ability to move with certainty.
This is a landmark event in the history of the Company and we will leverage off it to produce meaningful and substantial growth.
The liquidity to execute our growth plans is no small benefit and is vital to a small company's plans to become a bigger company.
We will continue to be prudent in analyzing and pursuing opportunities. We will not shy away from using prudent financial leverage to increase our returns and to deploy our equity capital in the most advantageous manner possible."
Investors are always cautioned to be careful in drawing conclusions from a single press release, the Company's performance in a single quarter or the individual opinions of any member of the Company's management in making their individual investment decisions.
Littlefield Corporation, acting through appropriately formed and licensed corporate subsidiaries, is the largest owner of charitable bingo halls in the United States with a total of thirty-one (31) bingo halls in Texas, South Carolina, Alabama and Florida.
The Company just recently opened a new bingo hall in San Angelo, Texas and has three (3) other bingo halls under development as well as a pending acquisition of six (6) other bingo halls.