Trek Resources, Inc. Announces Completion of Reverse Stock Split and Termination of Its Reporting Obligations and Stock Registra
May 10 2005 - 3:14PM
PR Newswire (US)
Trek Resources, Inc. Announces Completion of Reverse Stock Split
and Termination of Its Reporting Obligations and Stock Registration
DALLAS, May 10 /PRNewswire-FirstCall/ -- Trek Resources, Inc.
(OTC:TREK) (BULLETIN BOARD: TREK) (the "Company") today announced
that it has completed a "going private" transaction. Following a
1-for-100 reverse stock split of the Company's common stock, the
Company terminated the registration of its common stock under the
Securities Exchange Act of 1934, thereby terminating the Company's
reporting obligations with the Securities and Exchange Commission.
As a result of the going private transaction, the Company's common
stock will no longer be listed on the OTC Bulletin Board. In the
reverse stock split, the Company's common stockholders are entitled
to 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.
Holders of more than 100 shares of pre-split common stock received
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.
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. Copies of certain 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. Michael E. Montgomery, the
Company's chairman, president and chief executive officer,
commented, "The resources required to maintain our compliance with
the increasingly complex regulations imposed on publicly held
companies by the SEC have grown rapidly over the last few years.
These efforts now consume a far greater percentage of our
management and financial resources than can be justified by the
benefits derived. Our stockholders will be far better served by the
Company directing the resources freed by this change into
activities that will contribute directly to the Company's bottom
line." 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.
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.
The Company is not obligated to publicly update or revise these
risks, contingencies, uncertainties or forward-looking statements.
DATASOURCE: Trek Resources, Inc. CONTACT: Michael E. Montgomery of
Trek Resources, Inc., +1-214-373-0318 Web site:
http://www.trekresources.com/
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