NEW YORK, April 28, 2014 /PRNewswire/ -- World Assurance Group Inc. (www.worldassurancegroup.com) (OTC Pink: WDAS) today announced that its Board of Directors on April 28, 2014 adopted a corporate resolution to authorize a stock repurchase plan pursuant to which World Assurance Group Inc. may repurchase up to 100,000,000 (100 Million) shares of its common stock as part of an overall capital restructuring.
Mr. Fabio Galdi, CEO of WDAS, said, "We are committed to maximizing shareholder value and this is another step and commitment towards that goal. We see the share repurchase program as a clear message to the market of the board's view that the Company is currently undervalued. Therefore we expect that the repurchase of over 40% of the current float will help to provide a more stable stock price and trading environment over time. The Company will use some of the $3.6m cash received from Q1 revenues to help fund the repurchase, along with using the funds to invest further in current and additional technologies to grow revenue streams going forward."
"The stock repurchase program has a flexible design allowing for repurchases to be made in the open market at prevailing market prices or in privately negotiated transactions if warranted, in accordance with all applicable securities laws and regulations. Ultimately, we will achieve our intended goal to make appropriate adjustments to the Company's capital structure, further increasing shareholder value. Repurchasing of stock will be made at the discretion of World Assurance Group management according to the program's guidelines.
In addition, Mr. Galdi went on to say, "It is also important for the Company to have an appropriate market capitalization given the scale of the projects we engage in, not just with large commercial partners, but more increasingly with governments and other regulatory bodies that need to see a significant partner with the capability to deliver on the projects. In order to show that value in the short term, WPS has elected to convert the Series B Preference shares owned by it into common stock. This means that an additional 1.4 billion more common shares have been issued which are fully restricted for 24 months. WPS has no intention on selling its position as WDAS continues to build and grow shareholder value in a way that fully aligns management's value with that of the other common stockholders going forward. We currently do not have any debt in the business and have no need to consider stock splits or other modifications in foreseeable future. We believe that these actions should deliver a market capitalization more in line with the true value of the business."
About World Assurance Group
World Assurance Group Inc. is a holding company that currently operates through three wholly owned subsidiaries: Cellad Inc., a digital media company based in Ireland operating in the global mobile advertising industry. World Global Group Inc. (WGG), an intellectual property licensing company based in Miami, Florida and World Global Assets Pte Ltd (WGA), based in Singapore and which owns the Wor(l)d Global Network Pte Ltd brands, trademarks, technology and IP. Cellad's Adkash smartphone app is revolutionary new cloud advertising platform that allows advertisers and brands to deliver high definition, full screen adverts, coupons and click-through offers to subscribers via smartphone applications. When Adkash is installed on the user phone, every time they receive an inbound call or text message, Adkash pays the subscriber a fee in the form of cash or other agreed medium. WGG develops and acquires innovative technologies that are disruptive to existing processes. Additional information may be found at www.worldassurancegroup.com
This press release contains forward-looking statements. Words such as "expects", "intends'', "believes'', and similar expressions reflecting something other than historical fact are intended to identify forward-looking statements, but are not the exclusive means of identifying such statements. These forward-looking statements involve a number of risks and uncertainties, including the timely development and market acceptance of products and technologies, the ability to secure additional sources of finance, the ability to reduce operating expenses, and other factors described in the Company's filings with the OTC Markets Group. The actual results that the Company achieves may differ materially from any forward-looking statement due to such risks and uncertainties. The Company undertakes no obligation to revise or update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this release.
SOURCE World Assurance Group Inc.