FORT LAUDERDALE, Fla.--(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.