Tecton Corporation: 2013 Proxy Question & Answer Release relating to the Annual Meeting of Shareholders to be Held on July 22, 2013 YOUR VOTE IS IMPORTANT
CLEARWATER, Fla., July 9, 2013 /PRNewswire/ --
Q. What is Tecton Corporation (the "Company") trying to achieve with this proxy solicitation?
A. In addition to shareholders ratifying our current slate of directors, the Company is seeking to make amendments to its Articles of Incorporation that increase the number of shares of common and preferred stock that the Company is authorized to issue.
Q. Why does the Company need to increase the number of shares it is authorized to issue?
A. The Company has hit the limits of the number of shares of stock it can issue. Without the ability to issue additional shares, the Company has no means to raise capital, reduce its current debt by exchanging the debt for shares, enter into any merger agreements, or pursue any meaningful business plans.
Q. What may happen if the proposed changes to the Articles of Incorporation are not approved by shareholders?
A. The Company will not be able to move forward with restructuring its balance sheet, will not be able to raise additional capital, nor will it be able to make any acquisitions. It remains uncertain, if the proposed changes to the Articles of Incorporation are not approved by shareholders, that the shares will have any value.
Q. Why did the Company recently implement a 1-for- 40 reverse split?
A. The management felt it was in the best long-term interest of its shareholders to implement a reverse split because: many brokerage firms are no longer willing to accept physical stock certificates for deposit if those shares are valued at less than 10 cents, and the management believes that a sub-penny stock price is not likely to allow the Company access to institutional investors and would seriously impede any future financing options the Company might consider.
Q. What does the Board of Directors recommend?
A. The Board of Directors is recommending that each shareholder vote FOR the proposals put forth in its proxy statement. Shareholders who own registered shares may vote by signing and returning the proxy recently mailed to them, or may vote their shares online through our transfer agency's website, www.islandstocktransfer.com. Shareholders who hold shares in a bank or brokerage account must contact their financial institution to vote their shares.
SOURCE Tecton Corporation