1st Chesapeake Sells Controlling Interest

First Chesapeake Financial Corp., a Philadelphia-based mortgage lender, has reported the sale of 10 million newly issued shares of its common stock to All American Cos. for $300,000 and the sale of more than 3.67 million shares to All American by two top First Chesapeake executives.The executives are Mark Mendelson, the company's chairman and chief executive officer, and Mark Glatz, a director and chief financial officer of the company. If all conditions to the transaction are met, All American will own a controlling interest in First Chesapeake -- 68% of outstanding shares, or 58% on a fully diluted basis. "Under the terms of an escrow arrangement for both private transactions, All American Cos. is required to obtain by Oct. 30, 2003 the release of certain personal guaranties and liens that were granted by shareholders of First Chesapeake in connection with First Chesapeake's credit facility," First Chesapeake said. First Chesapeake is engaged in retail and wholesale mortgage banking, and All American is engaged in a variety of activities, including telemarketing and the provision of off-site clerical services to the medical industry.