BEIJING, Jan. 13 /PRNewswire-FirstCall/ - LandStar Inc. (LDSR; http://www.landstarcorp.com) board of directors wants to share information about the merger that the company had approached in past weeks, as the merger draws to advanced negotiation stages, and may necessitate a rescission of LDSR's 'No Recapitalization no Dilution Policy'.
The board of directors apologizes for the cautious nature of the merger negotiations and for not sharing any merger-related information with the public, as the new merger company has great prospects and generates great interest from other parties. LDSR still doesn't wish to share the company's name but wants shareholders to know that the new subsidiary is a profitable company with gross revenues in the range of $8 million USD and profits in the range of $2 million USD.
This candidate offers great future prospects for LDSR and would bring a definite success to LDSR and raise its value.
As the merger negotiations advance well, LDSR wants to inform shareholders that with a company of this size coming into LDSR, the merger might force LDSR to recapitalize and rescind the 'No Recapitalization no Dilution Policy' adopted by the Board of Directors in 2009. The company wants to assure shareholders that, as into its necessity, the policy rescission will undergo a thorough review, and in light of this review, LDSR Board of Directors will hold a vote on the policy rescission. If this merger requires a recapitalization, LDSR will work diligently with its advisors to ensure as low impact as possible on the investor community.
The increased capitalization will not be drawn down until the final merger is complete, and then those restricted shares placed in escrow with an agent in the USA. When all is said and done LDSR management hopes to complete the merger without increasing its current float or free trading share structure. The company wants to use this opportunity to thwart any of its critics' accusations which may allege that LDSR will reverse the stock. No such actions are planned nor warranted. The "no reverse stock" policy of LDSR remains undisturbed, and no stock reversal of any kind is planned or contemplated.
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Safe Harbor Statement
Information in this news release may contain statements about future expectations, plans, prospects or performance of LandStar Inc. that constitute forward-looking statements for purposes of the Safe Harbor Provisions under the Private Securities Litigation Reform Act of 1995. The words or phrases "can be", "expects", "may affect", "believed", "estimate", "project" and similar words and phrases are intended to identify such forward-looking statements. LandStar Inc. cautions you that any forward-looking information provided by or on behalf of LandStar Inc. is not a guarantee of future performance. None of the information in this press release constitutes or is intended as an offer to sell securities or investment advice of any kind. LandStar Inc.'s actual results may differ materially from those anticipated in such forward-looking statements as a result of various important factors, some of which are beyond LandStar Inc.'s control. In addition to those discussed in LandStar Inc.'s press releases, public filings, and statements by LandStar Inc.'s management, including, but not limited to, LandStar Inc.'s estimate of the sufficiency of its existing capital resources, LandStar Inc.'s ability to raise additional capital to fund future operations, LandStar Inc.'s ability to repay its existing indebtedness, the uncertainties involved in estimating market opportunities, and in identifying contracts which match LandStar Inc.'s capability to be awarded contracts. All such forward-looking statements are current only as of the date on which such statements were made. LandStar Inc. does not undertake any obligation to publicly update any forward-looking statement to reflect events or circumstances after the date on which any such statement is made or to reflect the occurrence of unanticipated events.
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SOURCE Land Star Inc.