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Health Plan Operator Will Go Public in an Exchange of Stock

August 01, 1986|MICHAEL FEIBUS

Admar Corp., a privately held health program administrator in Orange, said it will become a public concern next week when it reorganizes under an agreement with a Florida venture capital firm.

Under that agreement, signed Wednesday, Admar will trade its common stock for 31.7 million shares of Castle Ventures Corp. of Miami--85% of the company.

Admar's shares will be the only assets for Castle, which formed with the sole purpose of finding a company in which to invest. Castle will change its name to Admar Corp., which will remain headquartered in Orange.

Admar President Richard Toral said the move gives his company immediate access to $400,000 in cash from Castle and enables Admar to go public without the cost of an initial offering of its own.

Castle went public in January, raising $350,000 with a "blind pool" offering--in which investors bought stock without knowing where Castle would invest the proceeds. Since then, interest earnings have swelled the company's bankroll to more than $400,000. Castle officials said the company currently is in the midst of a private placement of 1 million shares at 17 cents per share.

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