NEW YORK, June 2, 2016 /PRNewswire/ - International Spirit & Beverage Group, Inc. (OTC PINK: ISBG) has announced that the company's Board of Directors have approved a stock buyback program to reduce the company's common stock float. The company is in the process of establishing a brokerage account to execute the plan to buy-back shares of its common stock from the public market, and reduce the float by approximately 25%. The Board of directors have agreed that a percentage of revenues derived from several projects that the company is working on will be used for buyback program.
The company Board has also agreed to a restrictive covenant agreement that no stock will be converted through new note holder debt conversions to dilute the stock for the next six months. The company no longer needs to raise monies through toxic debt instruments that dilute the stock as revenues are increasing. The company is currently negotiating with all third party note holders to buy back their debt. The company is making these moves to increase the share value of the company for its shareholders and believes that the deals forthcoming will create greater value for the company. If the company chooses to increase the authorized shares it will be for the purpose of acquisitions, restricted dividends owed or for management services. The goal of the company is to reduce the amount of the shares in the actual float dramatically through stock buy back program.
As the company buys back stock in the open market it will have the shares pulled from the float in certificate form and thus have them removed from the float and the outstanding share total of the company. The decision to approve a stock buyback program by the company was made because the Board of Directors feels that the shares are undervalued and that the company is being shorted by market makers. The company will announce to the public when shares have been purchased and retired and expects to start the program as soon as brokerage account is opened and funded by the company.
ISBG President, Mr. Williams stated. "We are focused on creating long-term stability and growth of our company and feel that the next 24 months of projected revenues presents an opportunity for us to improve our company and shareholder value."
ISBG, based in Houston, TX, is an alcoholic beverage company specializing in the development, global sales, and marketing of innovative wine & spirits brands. The Company's expertise lies in the strategic development and aggressive early growth of its brands establishing its assets as viable and attractive acquisition candidates for the major global spirits companies. ISBG intends to build its brands as individual acquisition candidates while continuing to develop its pipeline of new brands in to the ISBG portfolio. For more information visit: www.isbg.global
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SOURCE International Spirit and Beverage Group (ISBG)