PrepaYd CEO Clarifies Edgar Filing
13 Apr, 2012, 11:25 ET
NEWPORT BEACH, Calif., April 13, 2012 /PRNewswire/ -- PrepaYd, Inc. (OTC PINK: PPDC), announced today that in January of 2010 Bruce Berman issued 42,500,000 warrants at $0.0001 per share to the company's then Senior Vice President and 13,750,000 to the company's then Assistant Vice President. These options were issued from Bruce Berman's personal stock and diluted Bruce Berman's personal ownership of the company but not any of the company's shareholders.
In February of 2012 half of these warrants vested and were exercised. Rick Galasieski exercised 21,250,000 warrants and paid the company's CEO Bruce Berman $2,125.00 and received 21,250,000 restricted common shares of the company's stock from Bruce Berman. Josh Berman exercised 6,875,000 warrants and paid the company's CEO Bruce Berman $687.50 and received 6,875,000 restricted common shares of the company's stock from Bruce Berman.
Bruce Berman received a total of $2,812.50 from the exercise of 28,250,000 warrants and reduced his ownership in the company by 28,250,000. Rick Galasieski, who subsequently resigned, forfeited his remaining 21,250,000 warrants. Josh Berman, the company's now VP and director, has an additional 6,875,000 warrants at a purchase price at $0.0001 per share from Bruce Berman that vest in 2014.
"To the untrained investor at first glance the way some websites reported this transaction could give the appearance that I sold 28,250,000 shares of the company's stock for no apparent reason other than financial gain and the false impression that the stock was sold into the market and at market price of approximately $800,000 to $1,000,000 when in fact I netted $2,812.50 in a transaction structured to benefit shareholders at my sole expense," stated Bruce Berman CEO of PrepaYd, Inc.
About PrepaYd, Inc.
PrepaYd, Inc. is expanding from its original roots of providing much needed financial services in the Prepaid Debit Card industry into PrepaYd Wireless and mobile payments segments. The company, through one of its wholly owned subsidiaries, offers prepaid debit cards to America's estimated 60 million underbanked citizens. In addition to the underbanked consumer demographic, small and mid-size businesses have found a much needed product with the company's Prepaid Business Expense Card Program. With the diminishing credit card markets, companies need a new way to fund employees' expenses other than through traditional credit cards or cash reimbursements.
For more information about PrepaYd, Inc. visit www.PrepaYdInc.com.
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FORWARD-LOOKING SAFE HARBOR STATEMENT: To the extent that this release discusses any expectations concerning future plans, financial results or performance, such statements are forward looking within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are subject to substantial risks and uncertainties. Actual results could differ materially from those anticipated in the forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof and reflect only management's belief and expectations based upon presently available information. These statements, and other forward-looking statements, are not guarantees of future performance and involve risks and uncertainties and the company assumes no obligation to update any of the forward-looking statements in this release.
SOURCE PrepaYd, Inc.
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