Trek Resources, Inc. Announces Stockholder Approval of Reverse Stock Split as Part of Going Private Transaction
April 14 2005 - 6:40PM
PR Newswire (US)
Trek Resources, Inc. Announces Stockholder Approval of Reverse
Stock Split as Part of Going Private Transaction DALLAS, April 14
/PRNewswire-FirstCall/ -- Trek Resources, Inc. (OTC:TREK) (BULLETIN
BOARD: TREK) (the "Company") today announced that its stockholders
have approved a 1-for-100 reverse stock split of the Company's
common stock. Shares controlled directly or indirectly by Michael
E. Montgomery, the Company's Chairman, Chief Executive Officer and
President, and his mother, Faye C. Briggs, were voted, by written
consent in lieu of a stockholder meeting, in favor of the reverse
stock split. Mr. Montgomery and his mother currently own
approximately 59% of the Company's outstanding common stock and
100% of the Company's outstanding Series A convertible preferred
stock. In conjunction with the reverse stock split, the Company
intends to terminate the registration of its common stock under the
Securities Exchange Act of 1934. The Company will then cease filing
reports with the SEC and the Company's common stock will no longer
be listed on the OTC Bulletin Board. The reverse stock split will
be effected upon the filing of an amendment to the Company's
certificate of incorporation, which is expected to be filed
approximately 21 days after the Company first mails to its
stockholders of record an Information Statement and other materials
containing information regarding the reverse stock split. The
Company has received necessary regulatory approvals of the
Information Statement materials and will mail a copy of the
Information Statement materials to all stockholders of record
beginning on or about April 18, 2005. Stockholders of the Company
are advised to read the materials in their entirety because they
will contain important information. Copies of the Information
Statement materials, and certain other documents filed by the
Company with the SEC relating to the reverse stock split, are
available without charge at the SEC's website at
http://www.sec.gov/ or from the Company. In the reverse stock
split, the Company's common stockholders will receive cash in the
amount of $2.50 per pre-split share in lieu of any fractional
shares of post-split common stock. As a result, holders of fewer
than 100 shares of pre-split common stock at the time of the
reverse stock split will not remain Trek stockholders after the
reverse stock split. Holders of more than 100 shares of pre-split
common stock will receive one share of new post-split common stock
for each 100 shares of pre-split common stock, plus cash in lieu of
any fractional share. Shortly after the effective date of the
reverse stock split, stockholders will receive instructions
regarding the method of exchanging old stock certificates for cash
and/or stock certificates representing shares of post- split common
stock. Stockholders need not do anything with their stock
certificates until they receive instructions. Trek is a
Dallas-based domestic oil and gas acquisition and production
company with oil and gas assets principally in Texas and Oklahoma.
More information about the Company may be found at the Company's
web site, http://www.trekresources.com/ or by contacting Mr.
Montgomery at Trek's headquarters, 4925 Greenville Avenue, Suite
955, Dallas, Texas 75206, telephone number (214) 373-0318, or in
the Company's filings with the Securities and Exchange Commission,
which may be obtained at the Commission's web site at
http://www.sec.gov/ . The Company notes that statements contained
in this news release that are not based on historical facts are
forward-looking statements and, as such, are subject to
uncertainties and risks that could cause actual results to differ
materially from those projected or implied by such statements.
These risks, contingencies and uncertainties, many of which are
beyond the Company's control, include those risk factors that are
set forth in the Company's Annual Report on Form 10-KSB for the
year ended September 30, 2004, the Company's Quarterly Report on
Form 10-QSB for the quarterly period ending December 31, 2004, and
the Company's Reports on Form 8-K, all on file with the U.S.
Securities and Exchange Commission. DATASOURCE: Trek Resources,
Inc. CONTACT: Michael E. Montgomery of Trek Resources, Inc.,
+1-214-373-0318 Web site: http://www.sec.gov/ Web site:
http://www.trekresources.com/
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