ST. PETERSBURG, Fla.,
Aug. 23, 2011 /PRNewswire/ -- INFRAX
SYSTEMS, Inc. (OTC BB: IFXY), a global provider of unified Smart
Grid-related products and services for the Energy and Utility
industries, announced today that its Board of Directors, as
approved by their majority shareholder, has filed to reverse split
the Company's common stock with the Financial Industry Regulatory
Authority ("FINRA").
The 1 for 500 reverse stock-split is scheduled to take effect on
or about September 9, 2011 with the
"Record Date" of August 26th, 2011.
Upon approval of the Reverse Split, FINRA will change our trading
symbol from IFXY to IFXYD temporary for trading purposes. The
Certificate of Change was approved and adopted by the Board of
Directors in accordance with the applicable provisions of the
Nevada Revised Statutes. After the effectiveness of the Reverse
Stock Split, the Board will file with the State of Nevada to decrease the number of
authorized shares of the Company's Common Stock from 5,000,000,000
to 200,000,000 shares. The reverse will also affect all series of
Preferred.
"The Board of Directors feels that the time is right for this
action given our pending acquisitions, discussions with large
utility customers and licensers' of our technologies," stated
Sam Talari, Infrax Co-Chairman.
"Deciding on this event was not an easy decision and a very hard
pill to swallow, but the clarity began more apparent with the
overall market condition and our declining stock price in which we
believe showed only a resemblance of our net tangible &
intangible book value hence exposing us to a potential hostile
takeover. We believe that our current technology holdings, our
current customers, our future smart grid customers, our future
licensers of our technologies and our current and future patent
portfolios are and shall demand valuations exceeding far above what
we have traded at the highest point within our trading history.
Although there is an inherent risk in any corporate actions, we
believe that this decision by our board will enable us to execute
our business plan most efficiently while safe guarding our Company
and its valuable assets for our shareholders."
The Reverse Split/Share Reduction Amendment was approved for
several reasons including but not limited to:
- At the stage we are in with several utility clients, it is
important that our share price be perceived positively;
- As we proceed with our relationship with major meter
manufacturers, it is important that they and their distributors
perceive Infrax as a long term partner in the smart grid
sector;
- A stronger company will aid in the continued recruitment of
world-class talent as we expand operations, increase production,
and enter new global markets;
- To help close our open acquisitions hence increasing our patent
and technology portfolio.
"We have made great progress over the past few months and it is
important that going forward we are viewed as a legitimate Company
within our market sector by our clients and partners," said
Paul J. Aiello, Infrax CEO. "With
the recent actions or filings by our major competitors to go
public, we expect that our action will increase institutional and
analyst interest in our products and services."
About INFRAX Systems
Infrax Systems offers a series of interrelated operational
management, communications, and grid security related products and
services known as Secure Intelligent Energy Platform (SIEP). Our
products enable a comprehensive and unified solution for
communications and applications management of the Smart Grid. SIEP™
incorporates a wide array of communications, security, device and
data management tools for Smart Grid applications such as advanced
metering solutions and grid optimization. SIEP platform creates a
unified solution to securely manage Advanced Metering
Infrastructure (AMI) and distribution automation. Infrax's secure
smart grid platform, incorporates a communications transport and
management system, (Grid Mesh™), device and data security
management, and ultimately secures intelligent endpoint devices
(SIED). The secure management of the "last mile" backhaul will be
necessary for utilities to implement Smart Grid applications
including AMI, real-time pricing, Demand Side Management (DSM),
Distribution Monitoring and Automation. When combined, these
applications can offer economic, operational and environmental
benefits for utilities, and ultimately the utility's customers.
For INFRAX Systems information, contact Investors@Infraxinc.com
or visit www.infraxinc.com.
Forward-Looking Statements
This press release may contain forward-looking statements
covered within the meaning of the Private Securities Litigation
Reform Act of 1995. These forward-looking statements relate to,
among other things, plans and timing for the introduction or
enhancement of our services and products, statements about future
market conditions, supply and demand conditions, and other
expectations, intentions and plans contained in this press release
that are not historical fact and involve risks and uncertainties.
Our expectations regarding future revenues depend upon our ability
to develop and supply products and services that we may not produce
today and that meet defined specifications. When used in this press
release, the words "plan," "expect," "believe," and similar
expressions generally identify forward-looking statements. These
statements reflect our current expectations. They are subject to a
number of risks and uncertainties, including, but not limited to,
changes in technology and changes in pervasive markets.
Contact:
Media Contact:
Infrax Systems, Inc.
investors@infraxinc.com
727-498-8514
SOURCE INFRAX SYSTEMS, Inc.