FOUR STAR HOLDINGS, INC. (FSTH) SPO
|Company Name||FOUR STAR HOLDINGS, INC.|
|Company Address||100 FOUR STAR LANE
ODENVILLE, AL 35120
|CEO||Bobby R. Smith, Jr.|
|Employees (as of 6/1/2010)||12|
|State of Inc||FL|
|Fiscal Year End||12/31|
|Shares Over Alloted||--|
|Shareholder Shares Offered||--|
|Lockup Period (days)||180|
|Quiet Period Expiration||--|
We estimate that our net proceeds from the sale of the shares by us in this offering will be up to a maximum of $10,000,000 if all 2,000,000 shares offered by this prospectus are sold and, before deducting estimated offering expenses. Our principal reasons for conducting this offering at this time are to raise capital to expand our operations and construct new homes in our corporate owned developments, develop our brand through increased advertising and marketing programs, investing further resources into developing our corporate infrastructure and hiring employees and consultants. In addition, although we are currently not committed to do so, we expect to spend approximately $50,000 in the next 12 months to further develop our brand through new advertising and marketing programs, and the remaining portion of the offering proceeds for working capital and general corporate purposes, including the costs associated with being a public company. We are also conducting this offering to create a public market for our common stock, to facilitate our access to the public equity markets and to obtain additional capital. If the opportunity arises, we may use a portion of the net proceeds from this offering designated for expansion of operations to acquire or invest in distressed properties and distressed builders that have adequate assets. We are not currently a party to any agreements or commitments and we have no current understandings with respect to any acquisitions. Except as provided above, we cannot specify with certainty the particular uses for the net proceeds to be received upon completion of this offering and, at the date hereof, cannot accurately predict the amounts that we may spend for any particular purpose. The amounts of our actual expenditures will be influenced by several factors, including the timing and extent of our growth opportunities, the amount of cash used by our operations and the occurrence of unforeseen opportunities and events. Our Management team will have broad discretion in determining the uses of the net proceeds of this offering. Pending the use of the net proceeds, we intend to invest the net proceeds in short-term, investment-grade, interest-bearing instruments.
Today, Four Star Realty has over 25 Realtor Associates and is ranked third behind D. R. Horton and another local real estate company, which has 16 offices and over 2,000 realtors listing properties in the area. For the entire Birmingham MLS reporting area, Four Star Realty is ranked number 25 out of 325 agencies in combined sales and listing volume. Management is projecting a 20% growth rate despite the current economic conditions. Many of our competitors may have significantly greater financial, technical, marketing and other resources than us. We believe that our ability to compete depends on a number of factors, including price, quality of building material, new home availability, name recognition and post-sales service and support.
Four Star Holdings, Inc. hereinafter referred to as “The Company”, and the term “Management” is hereinafter referred to Bobby R. Smith, Jr. and Fran Mize, collectively. Management has operated as one of the largest developing and homebuilding companies in the Birmingham Alabama area. The
Company operates in four segments, Land Development, Structural Community P lanning, Homebuilding, and Realty Brokerage Services. As of March 31, 2010 the Company acquired Ridgefield Development Corporation and Four Star Realty, LLC, owned by Smith and Mize (Management). Four Star Holdings, Inc sells it properties under its subsidiary Four Star Realty, LLC. Management has been operating as officers and directors in various real estate brokerage and development ventures since 1992. To date Management has built over 1,100 single family homes, over 30 commercial properties, and currently has two multifamily projects and one town home complex under development. In December 2009 Management acquired majority control of a public company known as Dragons Lair Holdings, Inc. which was founded in 2007. The result of that transaction was the purchase of 74% of the Company’s common stock through a Stock Purchase Agreement for the consideration of $325,000. This gave authoritative control to Fran Mize, as President and Director and Bobby R. Smith, Jr. its Chairman and CEO, The Company is headquartered in the Birmingham, Alabama area. The banking industry, as a result of the Credit Crisis in the United States during the last two years, has limited and in some cases discontinued funding in the real estate development sector. Management’s solid foundation with its lenders for over the past 15 years has enabled them to borrow over $200 million with a stellar performance in servicing this debt. However, even with positive equity on the balance sheet Management’s primary lending institutions shut down the majority of its available line of credit. This affected the Company as it experienced slowed performance but did not stop the progress in sales and/or production. This did however, trigger the Company’s interest in going public to procure alternative financing for its expansion from other than traditional bank financing methods. Over the past 18 months they have seen many of their Home Building Competitors dwindle due to over leveraging and higher than normal carrying cost of inventory. The Company’s conservative inventory levels have given it the ability to sell homes at a better than average sale price compared to its competitors. To make it possible for purchasers of some of the Company’s homes to obtain 100% financing thru Rural Housing Development Loans, F HA-insured or VA-guaranteed mortgages, the Company must construct these homes in compliance with regulations promulgated by these agencies. Today, Birmingham ranks as one of the most important business centers in the nation and is also home of one of the largest banking centers in the U.S. In addition, the Birmingham area serves as headquarters to one Fortune 500 company: Regions Financial and five Fortune 1000 companies. ----- Our principal executive office is located at 100 Four Star Lane, Odenville, AL 35120. Our telephone number is (205)-640-7821, and our company website is www.4StarHoldings.com.
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