MANASSAS, VA, Oct. 14 /PRNewswire/ - In light of recent market events and the company's extended stock investigation, 8000inc contracted industry experts to assess current market behavior of its stock and to advise the company on the management of the share count discrepancy in line with exchange progression. As a result, The Board of 8000inc announces that this review indentified, subsequent to declaring a dividend of 10 cents per share to be paid on October 15 2010, the accounting treatment of the cash windfall resulting from the Company's unique financing model cannot be deemed either revenue or retained earnings, and therefore, these monies are ineligible for the purposes of issuing a special dividend. The Board now believes, based on legal advice that the Company can no longer pay this dividend without there being potentially significant legal and tax ramifications to both the individual shareholders and the Corporation. To continue with the dividend could be a technical contravention of Tax legislature, would negatively affect Corporate profitability and shareholder value and pass the TAX burden directly on to the shareholders.
Regrettably, the Board announces that this special dividend is cancelled and will not now be paid. The Board would also like to state that in light of these events, particularly the stock discrepancies, the Company has put forward a series of mechanisms, policies and checks, including but not limited to accountability audits and several proposed Corporate stock purchase programs to address the negative impact of these events and situation. Programs have already been initiated with the cooperation of share holders to retire certificates to reduce in the tradable float. These measures have been put in place to ensure that the company meets all qualification criteria for exchange progression, the Company's core objective. These mechanisms are far reaching and will return shareholder confidence and shareholder equity. As a result, the Company will focus on its core businesses and immediately proceed with the acquisition of the 10 acre site identified for the corporate Headquarters and Sports Centre of Excellence announced earlier.
Thomas Kelly stated "The Company made an error in its assumptions relating to the treatment of the announced dividend and has taken responsibility for that and acted. We have taken the appropriate steps and advice needed to focus on the business in the best interests of the shareholders for exchange progression. The Company would ask that the shareholders are patient and await further imminent updates and accept that this is the best direction for the company. We are confident that any negative impact relating to these events will be mitigated immediately by the steps we have taken and mechanisms to be announced. It is sometimes better to retreat and allow events to unfold and to learn in order to be stronger when it matters. The Company will always challenge convention, so long as it learns and evolves in the face of adversity, taking its responsibility seriously, I have no issue with that".
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 "Risk Factors" in the Company's Annual Report on Form 10-KSB and its other filings with the Securities and Exchange Commission. 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 8000 Inc.