8000 Inc. (EIGH.PK) Approves Voluntary Conversion of Common Stock Held by Shareholders to Voting Preferred Stock.
MANASSAS, VA, July 20, 2011 /PRNewswire/ - Due to the uncertainty surrounding ownership of EIGH.pk stock by the shareholders as highlighted by Brokers, and as voted for by the shareholders through the June 6, update, the board of 8000 Inc. ("EIGH") has approved the plan for the shareholders' individual conversion of common shares held to voting preferred shares which already has a CUSIP number. This is a voluntary, not mandatory (or corporate), action and it is for voting preferred stock. The Company expects to file promptly a new Form 211 to support creation of a trading market in the preferred stock of the Company.
Please note, according to Nevada law, owners of one type of stock may want, at some point, to convert their stock to a different type of stock in the same corporation, rather than sell the stock outright. Since current EIGH shareholders have voted for the conversion, he or she may convert the preferred stock for the common stock. The conversion right is also covered under section IV of EIGH's Articles and under Nevada law, NRS 92A.20.
EIGH has been advised by FINRA that this is a voluntary action, and can proceed without the necessity of FINRA approval nor any filing by EIGH. Shareholders have spoken to several broker-dealers who have confirmed that the process is straight forward and as outlined, additionally, EIGH spoke to DTCC to confirm the Company's shares are handled through their custody services. The benefit of this, as per the published service provisions, is that DTCC can upon request provide the physical certificate within one day, and thus there should be no delays in the process.
Finally, under SEC and Exchange Act Rule 15c3-3,l(i) one of its customer protection rules, the following applies and thus we expect the broker-dealers will comply immediately with individual shareholder requests: "…Delivery of securities. Nothing stated in this section shall be construed as affecting the absolute right of a customer of a broker or dealer to receive in the course of normal business operations following demand made on the broker or dealer, the physical delivery of certificates for: 1. Fully-paid securities to which he is entitled.."
Therefore, on Friday, July 22, EIGH will instruct broker-dealers holding EIGH shares available the physical delivery of the Company's stock held in their "street name" so that the shareholder's individual conversion can take place. Those shareholders who wish to vote for the voluntary conversion and be added to the list of shareholders may do so up to 5pm Thursday July, 21 by contacting the Company as below. The common shares will be cancelled. The Company will contact the Brokerages on Friday to make the give instructions. For more information please refer to the Company's Facebook page or request information from [email protected].
Jonathan Bryant, CEO, states, "Our new Board believes that if enough individuals choose to convert, the integrity of the share structure will return, thereby allowing the shareholders to realize the potential of our business. Difficulties notwithstanding, the viability of our business plan have never cast a doubt in my mind that this company would thrive once necessary funding was obtained. I am convinced such individual conversions will aide in that objective."
If there are any questions, please direct them to the [email protected].
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This news release contains forward-looking statements that are subject to certain risks and uncertainties that may cause actual results to differ materially from those projected on the basis of such forward-looking statements. The words "estimate," "project," "intends," "expects," "believes," and similar expressions are intended to identify forward-looking statements. Such forward-looking statements are made based on management's beliefs, as well as assumptions made by, and information currently available to, management pursuant to the "safe-harbour" provisions of the Private Securities Litigation Reform Act of 1995. For a more complete description of these and other risk factors that may affect the future performance of 8000 Inc., see published disclosure documents at www.OTCMarkets.com Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date made and the Company undertakes no obligation to disclose any revision to these forward-looking statements to reflect events or circumstances after the date made or to reflect the occurrence of unanticipated events.
SOURCE 8000inc.
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