Share swap: 4 SAGE for 5 CRGC
NEW YORK, Oct. 13, 2011 (GLOBE NEWSWIRE) -- Sagebrush Gold, Ltd. (OTCBB:SAGE.OB - News) and ContinentalResources Group (OTCBB:CRGC.OB- News) jointly wish torelease the following shareholder update:
Dear Sagebrush Gold Shareholder:
We are excited to report to you the accomplishments of Sagebrush Gold overthe last three months and share with you the outlook for the future success ofour business.
Earlier this year we decided to change our Company's focus to become asuccessful gold mining and exploration company. We believe we have hired thebest management and consultants in the resource space. Before I go into furtherdetail, we are pleased to report that recently the Company received asignificant capital infusion from a very reputable and successful investor.
Financing and Investment
Our Company has attracted funding that will enable us to complete multiplephases of our exploration program. Legendary investor Dr. Phillip Frost(Chairman of Teva Pharmaceuticals, Inc. (Nasdaq:TEVA - News), Ladenburg Thalmann &Co. (AMEX:LTS - News), OPKO Health, Inc. (NYSE:OPK - News) has invested $5 million inour subordinated debt and convertible preferred stock. Additionally, twoEuropean institutional investors increased their investment in the company byan additional $1.5 million in equity financing bringing their total investmentto over $5 million.
In July, we acquired the assets and properties and assumed the liabilitiesof Continental Resources Group Inc. (OTCBB:CRGC.OB - News), includingapproximately $12.5 million in cash. We agreed to issue 4 shares of our common stock for each 5 sharesof common stock of CRGC outstanding and also assumed the obligation to issueour warrants in exchange for CRGC warrants at the same ratio. We arehappy to report to you that our recapitalization from the Continental ResourcesGroup acquisition is nearly complete.