247MGI To Create a New Non Convertible Preferred Stock to Raise Money to Further Grow the New Bus. & Repurchase Common Stock ...
September 12 2011 - 7:38AM
Business Wire
247MGI, Inc. (PINK SHEETS: TOFS) (“247MGI”) has decided to
create a new, Non Convertible Preferred stock to raise cash to
further expand new operations and purchase shares of its Common
stock out of the market, reducing its current tradable float. The
new Preferred fits into the Company’s plans to file an S1
Registration after the merger to resume trading on the OTCBB.
The Company plans on raising $2,500,000 by offering 5 million
Units of a new Class of Preferred stock that is not convertible
into Common stock. The Preferred will carry a coupon rate of 10%
and have full voting rights. Each Unit shall consist of 1 share of
Preferred stock and two warrants. These warrants will have a
callable feature allowing the Company to cancel them if they are
not exercised once the feature kicks in. The new Preferred stock
will not cause any dilution to the current shareholders of Common
stock.
The Company will allocate $500,000 of the money raised to
repurchase its Common stock out of the market, thereby allowing it
to reduce the authorized shares further with the goal of having the
float at 500,000,000 and the authorized at 750,000,000 over the
next 15 months.
The Company would like to stress one more time it is not engaged
in any fund raising programs and the CEO has not sold any of his
stock in years. The Company’s CEO, has, from time to time sold
stock options granted him, but has not done this for several
years.
The Company looks forward to its upgrade to “PK” listing
sometime during the week, at which time the share reduction shall
take place, the merger will be completed and the Company can begin
working on its audits so it can once again be a fully reporting
company.
The Company asks Shareholders to monitor PinkSheets.com for
continued developments.
The foregoing press announcement contains forward-looking
statements that can be identified by such terminology such as
“believes,” “expects,” “potential,” “plans,” “suggests,” “may,”
“should,” “could,” “intends,” or similar expressions. Such
forward-looking statements involve known and unknown risks,
uncertainties and other factors that may cause the actual results
to be materially different from any future results, performance or
achievements expressed or implied by such statements. In
particular, management's expectations could be affected by, among
other things, uncertainties relating to our success in completing
acquisitions, financing our operations, entering into strategic
partnerships, engaging management and other matters disclosed by us
in our public filings from time to time. Forward-looking statements
speak only as to the date they are made. The Company does not
undertake to update forward-looking statements to reflect
circumstances or events that occur after the date the
forward-looking statements are made.