Shades Holdings acquired Fort Meyers, Fla.-based Suncoast Real Estate Owned Holdings, which became a wholly owned subsidiary of Shades.
In conjunction with the acquisition, Sean Lyons resigned as president and chief executive of Shades. Suncoast CEO Andy Garrett replaced Lyons as president and CEO of Shades.
Shades Holdings acquires and disposes distressed real estate via television and online auctions. Suncoast acquires, refurbishes and upgrades existing properties and sells them through its auction networks.
As a result of the acquisition, Suncoast transferred all of its issued and outstanding capital stock to Shades in exchange for 15.5 million shares of Shades’ common stock, which trades on the OTCQB under the symbol, SHDH.
“Becoming a publicly traded company marks an important milestone in the development of our business,” Garrett said. “According to the National Association of Realtors, auctions are the fastest-growing segment of the real estate industry.”
Real estate auctions totaled $17 billion in 2008 and are expected to account for up to one-third of all real estate sold in the coming years, the National Auctioneers Association says.
“With our in-place business model, seasoned management team, and wide-reaching auction network, we are well-positioned to benefit from the strong demand for foreclosed and bank-owned homes,” Garrett said.
