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EXHIBIT 99.1
For more information:
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Matthew Kyler Deb O'Halloran F. Chet Taylor
Stockwalk.com Group, Inc. Kinnard Investments, Inc. R.J. Steichen & Company
[email protected] [email protected] [email protected]
612-542-3626 612-370-2767 612-341-8364
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STOCKWALK.COM GROUP, INC., KINNARD INVESTMENTS, INC.
AND R.J. STEICHEN & COMPANY ANNOUNCE COMBINATION
MINNEAPOLIS...JUNE 6, 2000...Stockwalk.com Group, Inc. (Nasdaq: STOK), Kinnard
Investments, Inc. (Nasdaq: KINN) and privately owned R.J. Steichen & Company
today announced they will combine their securities brokerage and investment
banking firms under the Stockwalk.com Group holding company.
In the Kinnard agreement, Kinnard shareholders will receive $6.00 cash and
one-half share of registered Stockwalk common stock for each share of
outstanding Kinnard common stock. Holders of Kinnard options and warrants will
be cashed out as part of the agreement. In the Steichen merger agreement, the
sole shareholder of Steichen will receive approximately 4,300,000 shares of
restricted Stockwalk common stock in exchange for the outstanding common stock
of Steichen and up to an additional 2,000,000 shares, based upon Steichen's
operations during the two years following completion of the transaction.
The Steichen transaction is expected to close in July 2000 and the Kinnard
transaction is expected to close in September 2000. Both transactions are
subject to regulatory and shareholder approval. Steichen and Kinnard will
continue to be operated as independent subsidiaries of
Exhibit 99.1-1
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Stockwalk.com Group, Inc., and John E. (Jack) Feltl, the sole shareholder of
Steichen, and John C. Feltl will become directors of Stockwalk.com Group, Inc.
Combined, Stockwalk, Kinnard and Steichen had revenues in excess of $180 million
for the twelve months ended March 31, 2000, which is the fiscal year end of
Stockwalk.com group. The three firms employ more than 850 people, including more
than 400 registered representatives. Outside of Minneapolis, the three firms
also operate 34 branch offices in eight states.
Eldon Miller, chairman and CEO of Stockwalk.com Group, Inc., stated, "This is an
historic day for Stockwalk.com Group. The combination of Kinnard Investments and
R.J. Steichen & Company with our Miller, Johnson & Kuehn subsidiary creates a
stronger and more dynamic company for our collective clients, shareholders and
employees. It also closes the gap between our firm and the larger
regionally-based firms with which we compete. Best of all, these transactions
give us the opportunity to work with some of the top entrepreneurs and
investment professionals in the upper Midwest."
Previously, Kinnard announced a search for strategic alternatives to maximize
shareholder value. Commenting upon the transaction, William F. Farley, chairman
and CEO of Kinnard, stated that the acquisition terms satisfy the Company's
objectives. "I am excited about the future of the combined enterprise as is our
entire board which has enthusiastically endorsed this merger. This business
combination will provide added value and services to Kinnard's customers and
offer expanded opportunities to the talented staff that we have assembled at
Kinnard to contribute to the larger organization. I am particularly pleased that
Kinnard will continue to operate independently and carry on the tradition and
success achieved by its leadership over the years."
Exhibit 99.1-2
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Jack Feltl, president and CEO of R.J. Steichen & Company, said, "R.J. Steichen
will continue to operate independently as the oldest brokerage firm in Minnesota
carrying on its original name. This transaction will allow us jointly to compete
for bigger transactions and ultimately give our clients new opportunities to
grow their wealth. We recognize that the securities industry is undergoing great
change and this combination will give us a platform to continue to enhance
service for our clients' investment needs."
U.S. Bancorp Piper Jaffray acted as a financial advisor to Kinnard Investments
in connection with the transaction. Negotiations between Stockwalk and Steichen
were conducted directly by the principals.
ABOUT STOCKWALK.COM GROUP, INC.
Based in Minneapolis, Stockwalk.com Group, Inc. is the parent company of MJK
Holdings, Inc. which owns Miller, Johnson & Kuehn, Incorporated, a full-service
brokerage and Stockwalk.com, Inc., an online trading company. Both subsidiaries
are members of the National Association of Securities Dealers (NASD) and the
Securities Investor Protection Corporation (SIPC). For more information visit
www.stockwalk.com. AOL keyword "Stockwalk."
ABOUT KINNARD INVESTMENTS, INC.
Founded in 1944, Kinnard Investments, Inc. is a Minneapolis-based financial
services holding company which serves the needs of retail and institutional
clients by focusing on emerging growth companies in the upper Midwest for its
investment banking, research and market activities, and by specializing in the
origination and trading of corporate and municipal fixed
Exhibit 99.1-3
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income products. Additional information regarding Kinnard is available on the
Web at www.jgkinnard.com.
ABOUT R.J. STEICHEN & COMPANY
Roman Steichen founded R.J. Steichen & Company in 1929. His son, John Steichen,
later took over the business. Jack Feltl began working as a retail broker with
the firm in 1970. When John Steichen retired in 1986, Jack purchased the firm
from him and has guided it ever since. Today, Steichen is a full-service
brokerage firm with an emphasis on regional emerging growth companies. Steichen
is a member of the NASD and SIPC.
Forward Looking Statement: The matters set forth in this public dissemination,
including management's expectations regarding future growth and profitability,
are forward-looking statements within the context of the Private Securities
Litigation Reform Act of 1995. These statements involve certain risks and
uncertainties that could cause actual results to differ materially from such
statements. These potential risks and uncertainties include, among other
factors, the volatile nature of financial markets and the securities industry,
rapidly growing competition in the financial services industry, dependence on
and competition for experienced personnel, successful implementation of the
company's long-term strategy and federal and state regulatory and legislative
changes.
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Exhibit 99.1-4
