GROVELAND, Fla., July 11, 2012 /PRNewswire/ -- Eco Ventures Group, Inc. (OTCBB: EVGI) ("EVGI") today announced that a 1-for-40 reverse split of its common stock, previously announced on May 29, has been completed. Trading of the Company's common stock on a split-adjusted basis begins at the open of trading on Thursday, July 12, 2012. The shares will trade with the new CUSIP number 27887N209.
The Company last month announced it has signed a binding LOI to acquire a German Firm which offers strong operational synergies for both companies. The EVGI Board of Directors determined that this reverse stock split will optimize the Company's capital structure, facilitate future financing and is in the best interest of shareholders. The reverse split reduces the number of outstanding shares from approximately 90,023,648 to approximately 2,250,592.
Additionally, EVGI on May 29 announced it had signed a binding LOI to acquire a majority stake in a profitable German Firm which will require the Company to issue approximately 31 million restricted shares to complete the business combination. The Company is in the process of concluding its due diligence and expects to sign a definitive agreement on that transaction shortly. According to its (unaudited) 2011 financial results for the year ended Dec. 31, the Firm posted 2011 EBITDA of $2.7 million on $27.5 million in revenue, with a 2008-2011 average annual revenue growth rate of approximately 42 percent (all Firm financials included herein are Euros converted to USD at 1:1.29).
The reverse stock split automatically combines each 40 shares of issued and outstanding common stock into one share of common stock without any change in the par value per share. Each stockholder's percentage ownership in the Company and proportional voting power will remain unchanged after the reverse stock split, except for nominal changes and adjustments resulting from the treatment of fractional shares. Proportional adjustments will be made to EVGI's outstanding warrants and stock options.
EVGI will not issue fractional shares in connection with the reverse stock split and stockholders otherwise entitled to a fractional share will receive the rounded-up number of shares.
Information for Stockholders
Upon execution of the reverse split, Company shareholders will receive one new share of EVGI common stock for every 40 shares held. Stockholders with shares held in "street name" form or through a bank, broker, or other nominee are not required to take any action and will see the impact of the reverse stock split reflected in their accounts. Beneficial holders may contact their bank, broker, or nominee for more information.
Stockholders with shares held in certificate form are not required to exchange their stock certificates, however, upon presentment to the Company, broker and/or transfer agent, the current share certificate will be exchanged for a new certificate reflecting the post reverse amount of shares.
About Eco Ventures Group, Inc.
Eco Ventures Group, Inc. ("EVGI") is a family of ecologically friendly and economically sound businesses committed to providing for society's minerals, energy and renewable resource needs.
EVGI concentrates on two core business activities. EVGI's Eco Minerals Recovery Group specializes in the extraction of precious metals from ore bodies and reclaimed mine tailings and Eco Energy Group will focus on the production of advanced biodiesel from recovered cooking oils and oil rich plants.
Safe Harbor statement under the Private Securities Litigation Reform Act of 1995: EVGI encourages those interested in our Company to rely only on information included in our filings with the United States Securities and Exchange Commission which can be found at www.sec.gov. Statements released by Eco Ventures Group, Inc. that are not purely historical are forward-looking within the meaning of the "Safe Harbor" provisions of the Private Securities Litigation Reform Act of 1995, including statements regarding the company's expectations, hopes, intentions, and strategies for the future. Investors are cautioned that forward-looking statements involve risk and uncertainties that may affect the company's business prospects and performance. The company's actual results could differ materially from those in such forward-looking statements. Risk factors include but are not limited to general economic, competitive, governmental, and technological factors as discussed in the company's filings with the SEC on Forms 10-K, 10-Q, and 8-K. The company does not undertake any responsibility to update the forward-looking statements contained in this release.
SOURCE Eco Ventures Group, Inc.