Pacel Corp. Raises Additional $250k for a Total of $2.5 Million for Mergers and Acquisitions
PR Newswire - June 10, 2004 11:26
CHARLOTTE, N.C., Jun 10, 2004 /PRNewswire-FirstCall via COMTEX/ -- Pacel Corporation (OTC Bulletin Board: PCCL) announced today that is has received an additional $250,000 dollars from Wall Street-based Compass Capital Group. This brings the total amount of capital raised for mergers and acquisitions to $2.5 Million. These funds will allow the company to implement a strategic plan for mergers and acquisitions within the PEO Industry.
David Calkins, Chairman of the Board for Pacel, stated, "With the additional funds that Compass Capital Group has provided, we are very close to closing a major acquisition. The acquisition of (Rossar, LLC.) is expected to close by the end of June, 2004 and will provide an average of $11 Million annual increase in Gross Billings and approximately $ 630,000 in new revenues. This type of capital infusion will allow the company to proceed with our plan become a leading force in the PEO Industry."
PEO companies are growing at a rate of greater than 20% and most experts predict this rate of growth can be sustained for 5-10 years as PEO's respond to the growing need for their services. The Small Business Administration estimates there are nearly 6 million businesses with fewer than 100 employees. These small to mid-sized businesses employ over 52 million employees with an aggregate payroll of over $1.1 trillion. It is estimated the PEO industry currently has between 2-3 million worksite employees with annual payrolls greater than $18 billion. With just 2% of the market, the growth in PEO services is unlimited.
With an average annual growth rate of 20%, more and more business owners are turning to the Professional Employer Industry to provide them with the tools they need to increase productivity and profits.
About Pacel Corp.
Pacel Corporation provides Human Resource Outsourcing services, including benefits administration, payroll administration, governmental compliance, risk management, unemployment administration and benefits administration to small and medium-sized businesses in the United States.
The statements contained in this press release that are not historical facts are forward-looking statements that involve a number of risks and uncertainties. Therefore, the actual results of future events described in such forward-looking statements could differ materially from those stated in such forward-looking statements. Among the factors that could cause actual results to differ materially are: (i) regulatory and tax developments; (ii) the effectiveness of the Company's sales and marketing efforts; (iii) changes in the competitive environment of the industry; (iv) changes in general economic conditions; (v) changes in the Company's direct costs and operating expenses; (vi) the estimated costs and effectiveness of capital projects and investments in technology and infrastructure. (vii) Management's ability to effectively implement its business strategy. These factors are described in further detail in filings with the Securities and Exchange Commission.
SOURCE Pacel Corporation
PR Newswire - June 10, 2004 11:26
CHARLOTTE, N.C., Jun 10, 2004 /PRNewswire-FirstCall via COMTEX/ -- Pacel Corporation (OTC Bulletin Board: PCCL) announced today that is has received an additional $250,000 dollars from Wall Street-based Compass Capital Group. This brings the total amount of capital raised for mergers and acquisitions to $2.5 Million. These funds will allow the company to implement a strategic plan for mergers and acquisitions within the PEO Industry.
David Calkins, Chairman of the Board for Pacel, stated, "With the additional funds that Compass Capital Group has provided, we are very close to closing a major acquisition. The acquisition of (Rossar, LLC.) is expected to close by the end of June, 2004 and will provide an average of $11 Million annual increase in Gross Billings and approximately $ 630,000 in new revenues. This type of capital infusion will allow the company to proceed with our plan become a leading force in the PEO Industry."
PEO companies are growing at a rate of greater than 20% and most experts predict this rate of growth can be sustained for 5-10 years as PEO's respond to the growing need for their services. The Small Business Administration estimates there are nearly 6 million businesses with fewer than 100 employees. These small to mid-sized businesses employ over 52 million employees with an aggregate payroll of over $1.1 trillion. It is estimated the PEO industry currently has between 2-3 million worksite employees with annual payrolls greater than $18 billion. With just 2% of the market, the growth in PEO services is unlimited.
With an average annual growth rate of 20%, more and more business owners are turning to the Professional Employer Industry to provide them with the tools they need to increase productivity and profits.
About Pacel Corp.
Pacel Corporation provides Human Resource Outsourcing services, including benefits administration, payroll administration, governmental compliance, risk management, unemployment administration and benefits administration to small and medium-sized businesses in the United States.
The statements contained in this press release that are not historical facts are forward-looking statements that involve a number of risks and uncertainties. Therefore, the actual results of future events described in such forward-looking statements could differ materially from those stated in such forward-looking statements. Among the factors that could cause actual results to differ materially are: (i) regulatory and tax developments; (ii) the effectiveness of the Company's sales and marketing efforts; (iii) changes in the competitive environment of the industry; (iv) changes in general economic conditions; (v) changes in the Company's direct costs and operating expenses; (vi) the estimated costs and effectiveness of capital projects and investments in technology and infrastructure. (vii) Management's ability to effectively implement its business strategy. These factors are described in further detail in filings with the Securities and Exchange Commission.
SOURCE Pacel Corporation