MANCHESTER, N.H., April 14, 2011 /PRNewswire/ -- QED Connect, Inc. (otc: QEDN), a New York corporation ("QED Connect"), today announced that it is revising its cap-structure to better position the Company for future acquisitions and funding opportunities. The Company has received approval from FINRA for a 1-for-5,500 reverse split of the Company's common stock and a 1-for-4 reverse split of the preferred stock, as of April 15, 2011. The Company's common shares will carry a "D" in the trading symbol QEDND (otcmarkets) for twenty days after the effective date. The new CUSIP number is 74732Q300.
QED has been implementing it operational plan to become a parent company of targeted acquisitions and joint partners for the last two years. QED has developed a solid portfolio of strategic partners and acquisitions; however, due to market conditions, funding has been difficult to obtain. Consequently, capital raises to support the various businesses have been delayed, resulting in Company management revising its business strategy. QED management believes that, in order to achieve its objectives, the Company needed to implement a re-structure of its capitalization.
According to Tom Makmann, President and CEO of QED Connect, Inc., "QED can now move forward on its growth plan and remains excited about funding its stable of promising companies. Our partners need cash to aggressively ramp up their respective businesses, and I believe we in turn can expect improved revenues and operating results as this happens."
The Company has entered into several arrangements which management believes will benefit from a revised capital structure: 1) Formed a joint venture in the United States with Sofame Technologies, Inc., a Montreal based company, for the exclusive rights for the marketing, distribution, sales, and channel support of Sofame Technologies 's products within the United States. 2) Entered into Stock Purchase and Consulting Agreements with Sonasoft Corporation, a California company to provide for marketing, business development and financial support. 3) Signed a Letter of Intent with Nazz Productions, Inc. ("Nazz"), whereby Nazz is to become a wholly-owned subsidiary of the Company. Nazz is an independent producer and distributor of film and television entertainment content. 4) Signed a Letter of Intent to acquire 100% of the assets of StockProfile.com. StockProfile.com provides the investing public with a unique information portal to investors who like to conduct their own research as well as make their own investment decisions.
The reverse stock immediately split affects all of the Company's common and preferred stock, stock options and warrants outstanding prior to the effective date of the reverse stock split. The reverse split will reduce QED Connect, Inc.'s common stock outstanding from approximately 9,749,425,280 shares to approximately 1,772,623 shares and preferred shares from 1,000,000,000 to approximately 250,000,000 shares. The authorized common and preferred shares have been reduced; 10,000,000,000 to 1,000,000,000 and 2,000,000,000 to 500,000,000 respectfully. Shareholders are not required to send their current share certificates to the transfer agent. All fractional shares will be rounded up and each shareholder will receive new certificate evidencing their post-reverse split shares if and when they present their certificates to the transfer agent.
A mandatory certificate exchange is not required; however, current shares may be swapped for a new certificate with the new CUSIP number and symbol through the transfer agent at the shareholders option. Contact Routh Stock Transfer at:
About QED Connect, Inc.
QED Connect, Inc. is a New York corporation holding company which makes acquisitions, investments, and enters into strategic business partnerships. The Company seeks businesses with strong potential which QED can assist in achieving their plans and realizing their maximum potential. This business model achieves the Company's goals and expands its overall revenue and profits and diversifies through entry into the multiple market segments. It is QED's intention to help its partners and subsidiaries realize growth, and that growth would, in turn, enhance QED's ability to increase shareholder value. www.qedconnect.com
Safe Harbor Statement
Certain statements in this press release that are not historical facts are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements may be identified by the use of words such as "anticipate," "believe," "expect," "future," "may," "will," "would," "should," "plan," "projected," "intend," and similar expressions. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of QED Connect, Inc., (the "Company") to be materially different from those expressed or implied by such forward-looking statements. The Company's future operating results are dependent upon many factors, including but not limited to the Company's ability to: (i) obtain sufficient capital or a strategic business arrangement to finance the joint venture with SoFame Technologies, Inc., and to fund QED's overall expansion plans; (ii) build the management and human resources and infrastructure necessary to support the growth of its joint venture, SoFame Energy, Inc., and to fund QED's growth, generally ; (iii) successfully obtain and fill potential joint venture product orders; (iv) generate sufficient revenue and efficiently manage operations to obtain profitability; (v) competitive factors and developments beyond the Company's control; fund and complete its common stock buy-back strategy and (vii) other risk factors.
SOURCE QED Connect, Inc.