NORCROSS, Ga., April 26, 2011 /PRNewswire/ -- VEGA BIOFUELS, INC. (Pink Sheets: VGPR) provides the following update to its shareholders.
The first part of this year we have concentrated on matters associated with the restructuring of our securities to better position the Company as we move forward with the financing, construction, and implementation of our bio-coal manufacturing plant in South Georgia.
On April 18, 2011 we announced that OTC Markets had elevated their tier listing for the Company to Current Information status. This was an important first step in our restructuring plans. Once the 2010 Annual Report was filed, we reported that we were planning to cancel 26.5 billion common shares of our stock. As of today, the necessary documentation has been submitted to the Company's Transfer Agent to complete the cancellation of these shares. Upon the completion of the cancellation of these shares, the Company's total Issued and Outstanding common shares will be reduced from 31 billion shares to just over 4.5 billion shares. The Company's public float will be reduced from just over 4 billion shares to just over 2.5 billion shares. The Company's public float is the number of shares that are currently available for trading in the open market. We anticipate that we will be able to report the completion of the share reduction in our first quarter 2011 quarterly update on OTC Markets.
In addition to the reduction of common shares that are Issued and Outstanding, we announced that we would also be reducing the number of Authorized Common Shares that may be issued by the Company. As of today, the Company's Articles of Incorporation have been amended to reduce the number of Authorized Common Shares from 50 billion to 10 billion. A copy of the Amendment has been sent to the Wyoming Secretary of State's office to officially amend the Company's Articles of Incorporation.
These changes put our share numbers more in line with our plans as we move forward with the construction of the South Georgia manufacturing plant. We now have 10 billion shares Authorized, but only 2.5 billion trading in the float. We understand that some of you have been concerned about a possible reverse split of our stock and by making these reductions there is no need to conduct a reverse.
We look forward to updating you soon with new developments associated with the South Georgia plant.
Thanks for your continued support.
Michael K. Molen
Vega Biofuels, Inc.
Certain statements in this release constitute forward-looking statements or statements which may be deemed or construed to be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The words "forecast," "plan," "project," "intend," "expect," "should," "would," and similar expressions and all statements, which are not historical facts, are intended to identify forward-looking statements. These forward-looking statements involve and are subject to known and unknown risks, uncertainties and other factors which could cause the Company's actual results, performance (finance or operating) or achievements to differ from future results, performance (financing and operating) or achievements expressed or implied by such forward-looking statements.
CONTACT: Vega Biofuels, Inc.: 800-481-0186
SOURCE Vega Biofuels, Inc.