Shareholders Approve Acquisition of DAL Group, LLC
11 Januar 2010 - 6:04PM
PR Newswire (US)
Change to DJSP Enterprises, Inc. TORTOLA, British Virgin Islands,
Jan. 11 /PRNewswire-FirstCall/ -- Chardan 2008 China Acquisition
Corp. (NASDAQ:CACANASDAQ:CACAUNASDAQ:CACAW) today announced that
shareholders approved the acquisition of a controlling interest in
DAL Group, LLC ("DAL") at a meeting that took place today at the
offices of Chardan's lawyers in New York City and that the
acquisition and all proposals presented at the meeting were
approved with fewer than 0.5% of outstanding public shares electing
to redeem their shares. At the closing of the acquisition, expected
to be on or before Friday, January 15, DAL will own 100% of the
business and operations of Default Servicing, Inc. ("DSI") and
Professional Title & Abstract Company of Florida ("PTA") and
the non-legal operations supporting the foreclosure and other legal
proceedings handled by the Law Offices of David J. Stern, P.A.
("DJS") (collectively referred to as the "Company"). In addition,
at that closing Chardan will change its name to DJSP Enterprises,
Inc. ("DJSP"), and its stock is expected to continue to trade on
NASDAQ under the symbols DJSP, DJSPU, and DJSPW. Kerry Propper,
Chairman of Chardan, stated that, "We are happy that shareholders
overwhelmingly approved the transaction and we look forward to
helping the Company expand and grow in the coming years." Business
Highlights At closing, DJSP will be one of the largest providers of
processing services for the mortgage and real estate industries in
Florida and one of the largest in the United States. The Company
provides a wide range of processing services in connection with
mortgages, mortgage defaults, title searches and abstracts, REO
(bank-owned) properties, loan modifications, title insurance, loss
mitigation, bankruptcy, related litigation and other services. The
Company's clients include all of the top 10 and 17 of the top 20
mortgage servicers in the United States, many of which have been
customers for more than 10 years. The Company has approximately
1000 employees and is headquartered in Plantation, Florida, with
additional operations in Louisville, Kentucky and San Juan, Puerto
Rico. The Company's U.S. operations are supported by a scalable,
low-cost back office operation in Manila, the Philippines that
provides data entry and document preparation support for the U.S.
operation. Financial Highlights The Company has experienced rapid
growth over the past four years, increasing revenues from
approximately $40 million in 2006 to approximately $199 million in
2008, while increasing net income, on a pro forma basis, for the
same two periods from approximately $7 million to approximately $39
million. The Company had revenues of approximately $117 million for
the 6 months ended June 30, 2009 and an adjusted pro forma net
income for that period of $22 million, signaling continued growth.
Please see Chardan's press release dated December 14, 2009 and the
proxy statement relating to the extraordinary meeting (filed with
the SEC on December 29, 2009) for additional information on the
Company. About Chardan Chardan was formed in February 2008 for the
purpose of acquiring a controlling interest in an unidentified
operating business. Additional information about Chardan is
available in Chardan's public filings available from the SEC
website: (http://www.sec.gov/). Forward Looking Statements This
press release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995,
about Chardan, DAL, the Company, DJSP and their combined business
after completion of the proposed acquisition. Forward looking
statements are statements that are not historical facts. Such
forward-looking statements, based upon the current beliefs and
expectations of Chardan and the Company's management, are subject
to risks and uncertainties, which could cause actual results to
differ from the forward looking statements. The following factors,
among others, could cause actual results to differ from those set
forth in the forward-looking statements: business conditions,
changing interpretations of generally accepted accounting
principles; outcomes of government or other regulatory reviews,
particularly those relating to the regulation of the practice of
law; the impact of inquiries, investigations, litigation or other
legal proceedings involving DJSP, which, because of the nature of
the Company's business, have happened in the past to the Company
and DJS; the impact and cost of continued compliance with
government or state bar regulations or requirements; legislation or
other changes in the regulatory environment, particularly those
impacting the mortgage default industry; unexpected changes
adversely affecting the businesses in which the Company is engaged;
fluctuations in customer demand; the Company's ability to manage
rapid growth; intensity of competition from other providers in the
industry; general economic conditions, including improvements in
the economic environment that slows or reverses the growth in the
number of mortgage defaults, particularly in the State of Florida;
the ability to efficiently expand its operations to other states or
to provide services not currently provided by the Company; the
impact and cost of complying with applicable SEC rules and
regulation, many of which DJSP will have to comply with for the
first time after the closing of the business combination;
geopolitical events and changes, as well as other relevant risks
detailed in Chardan's filings with the U.S. Securities and Exchange
Commission, (the "SEC"), including its report on Form 20-F for the
period ended December 31, 2008 and the Form 6-K filed with the SEC
containing the proxy statement relating to the business combination
which was mailed to shareholders of Chardan. The information set
forth herein should be read in light of such risks. Chardan, DAL
and the Company do not assume any obligation to update the
information contained in this press release. Non-GAAP Financial
Measures The financial information and data contained in this press
release are unaudited and do not conform to the SEC's Regulation
S-X. Accordingly, such information and data may not be included in,
may be adjusted in or may be presented differently in, CACA's proxy
statement to solicit stockholder approval for the proposed
acquisition. This press release includes certain estimated
financial information and forecasts presented as pro forma
financial measures that are not derived in accordance with
generally accepted accounting principles ("GAAP"), and which may be
deemed to be non-GAAP financial measures within the meaning of
Regulation G promulgated by the SEC. CACA and management of the
acquired business believe that the presentation of these non-GAAP
financial measures serve to enhance the understanding of the
financial performance of acquired business and the proposed
acquisition. However, these non-GAAP financial measures should be
considered in addition to and not as substitutes for, or superior
to financial measures of financial performance prepared in
accordance with GAAP. Our Non-GAAP financial measures may not be
comparable to similarly titled pro forma measures reported by other
companies. The Non-GAAP measures used herein may not be comparable
to similarly titled measures reported by other companies. Such
measures are not recognized terms under U.S. GAAP, and should be
considered in addition to, and not as substitutes for, or superior
to, operating income, cash flows, revenues, or other measures of
financial performance prepared in accordance with generally
accepted accounting principles. Such measures are not a completely
representative measure of either the historical performance or,
necessarily, the future potential of DJSP. Adjusted Net Income -
The Company is providing adjusted Net Income, a non-GAAP financial
measure, along with GAAP measures, as a measure of profitability
because adjusted Net Income allows comparison of past performance
with the taxable structure that will be in place after consummation
of the transaction. In the calculation of adjusted Net Income, the
Company deducts the Depreciation and Amortization amounts to the
Adjusted EBITDA calculation and then subtracts the income tax
expense from that figure calculated at the expected 'going forward'
tax rate of 35%. DATASOURCE: Chardan 2008 China Acquisition Corp.
CONTACT: Kerry Propper, +1-646-465-9088,
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