SCHEDULE 14A INFORMATION
Proxy Statement Pursuant to Section 14(a) of the
Securities Exchange Act of 1934
(Amendment No. ____)
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Excal Enterprises, Inc.
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(Name of Registrant as Specified in its Charter)
EP Opportunity Fund, L.L.C.
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FOR IMMEDIATE RELEASE
Contacts: Edward McCarthy Jeffrey Eisenberg
Beacon Hill Partners EP Opportunity Fund, L.L.C.
(212) 843-8500 (312) 456-9500
EP OPPORTUNITY FUND, L.L.C. TO SEEK
BOARD SEAT ON EXCAL ENTERPRISES BOARD
CHICAGO, IL, July 27, 1999 -- EP Opportunity Fund, L.L.C. (the
"Fund") today announced that it has commenced a solicitation of proxies to
elect Jeffrey Eisenberg to the board of directors of Excal Enterprises,
Inc. (NASDAQ: EXCL - news) and to amend the Company's Bylaws. The Fund
today mailed proxy material including a blue proxy card to all stockholders
of Excal Enterprises, Inc. (the "Company").
Until its recent acquisition of a sports licensing business, the
Company's principal line of business has been owning and operating certain
real estate located in Jacksonville, Florida known as the "Imeson Center."
The Imeson Center was originally received as part of a settlement with
Sears Roebuck & Co. for certain claims by the Company in connection with
the termination by Sears of an agreement between Sears and the Company.
This settlement and the circumstances surrounding it is the subject of a
widely reported class action lawsuit against Sears. The Company has
publicly stated that it plans to use the proceeds from leveraging the
Imeson Center to acquire additional new core businesses that will be used
as a springboard to future growth.
Mr. Eisenberg, the manager of Eisenberg Partners, L.L.C., the
manager of the Fund, which controls a 14.1% stake in the Company as of the
record date, stated that, "The Fund believes that the Company's current
expansion plan is misguided." Furthermore, "The Fund believes that
stockholders of the Company would realize significantly greater value from
receiving the cash proceeds from a sale or liquidation of the Company than
if the Company were to invest its assets in new lines of business. The
significant losses of the Company's newly acquired sports licensing segment
is indicative of the risks inherent in acquiring new businesses and
evidence that the Company's expansion plan is improper."
The Fund is also extremely concerned about the current lawsuit
against the Company by the Securities and Exchange Commission alleging,
among other things, that the Company has filed false periodic reports under
the Securities Exchange Act of 1934, as amended, and falsified its books
and records. In connection with this and other litigation, the Company has
spent over $1,000,000 on legal fees during the last two years in defending
itself. The Fund believes, "that these matters should be quickly settled,
the persons responsible for the violations of law should bear the
responsibility for their actions and that the Company should be run for the
benefit of its stockholders, not its lawyers."
According to the Fund, if Mr. Eisenberg is elected and takes
office as a director, he intends, consistent with his fiduciary duties and
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as one of three directors, to take action to solicit, and cause the
Company's Board of Directors to review and negotiate, offers to merge or
acquire the Company on terms that are fair and in the best interests of all
stockholders of the Company and urge the Company's Board of Directors to
otherwise take measures to enhance the value of the Company's common stock.
The Fund has retained Beacon Hill Partners, Inc. to assist in the
solicitation of proxies. For further information, contact Edward McCarthy
of Beacon Hill Partners at 800-755-5001.
EP Opportunity Fund was established, and is managed, by Eisenberg
Partners, L.L.C., of which Jeffrey Eisenberg serves as the manager. The
Fund primarily invests in publicly traded companies which appear to offer
significant appreciation.
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