O2 Secure Wireless, Inc. Announces Completion of 1-for-1000 Reverse
Split of Common Shares
ST. AUGUSTINE, Fla.,
Dec. 7, 2012 /PRNewswire/ -- O2
Secure Wireless, INC. (Pink Sheets: OTOW.PK - News) – announces
today that the Company has filed a Supplemental Information
Disclosure Statement with the OTC Markets confirming FINRA's
approval of the Company's requested 1 for 1000 reverse stock split.
The approved reverse stock split will be effective upon markets'
opening on December 10, 2012.
The Company's common stock will continue to be traded on the
Pink Sheets under the symbol "OTOW", with a "D" added, which has
been placed at the end of the trading symbol, and will remain for
20 trading days to indicate the reverse stock split has occurred.
The new CUSIP number it now trades under is: 67107C203. O2 Secure
Wireless' Supplemental Information Disclosure Statement is
currently posted for review at
http://www.otcmarkets.com/stock/OTOW/filings. See Corporate website
for additional information.
The reverse split consolidated every one thousand common shares
into one common share, no par value per share. The number of
authorized common shares has been reduced to eighty million but the
authorized preferred shares will not be affected by the reverse
split. In respect to the underlying common shares associated with
any derivative securities, such as warrants, options and
convertible notes, the conversion and exercise prices and number of
common shares issued will be adjusted in accordance to the 1:1000
ratio. A reverse stock split reduces the number of a corporation's
shares in an attempt to increase the value of its stock or its
earnings per share. It is anticipated that this action will
establish a higher market price for the Company's common shares and
reduce per share transaction fees as well as expand the potential
market for investors who were previously hindered by trading
limitations.
As a result of the reverse stock split, the number of the
Company's common shares outstanding will be reduced from
2,465,939,418 to approximately 2,465,939 shares, subject to
rounding up of all fractional shares to the nearest whole
share.
We are effectuating this reverse stock split in order to be able
to access the previously announced drawdown line of credit in an
amount of $5,000,000. On September 21, 2012, we entered in a Reg A Equity
Financing Agreement (the "Agreement") with AGS Capital Group, LLC
("AGS"), whereby AGS shall provide us a $5,000,000 drawdown line of credit (the "Line of
Credit") under Reg A of the Securities Act of 1933. In order
to have access to the Line of Credit, we must effectuate the
reverse stock split. This is true because at our current
price per share the discount to the closing price of our common
stock we will be selling shares for under the Liner of Credit would
effectively result in the funds we could call being
negligible. Additionally, pursuant to the Agreement, we must
reserve sufficient shares to cover the amount of the Line of
Credit. The Line of Credit will be used for the Development
of its Building Projects domestically and abroad. The Line of
Credit will enable the Company to access the working capital
required to undertake the projects that will in turn enable the
Company to begin generating substantial revenues, while keeping the
stock structure in tack creating a truly advantageous opportunity
for our shareholders to prosper.
"We are pleased to have completed this reverse split which was
required in order to be able to access a drawdown line of credit in
an amount of $5,000,000," stated
Val Kazia, President, O2 Secure
Wireless, Inc. He continues: "It is our expectation that the higher
split-adjusted stock price will make it possible for the shares to
be traded in many environments where corporate limitations
previously hindered such activity. We expect this to broaden our
potential audience and shareholder base, and ultimately enhance our
shareholder valuation to better reflect the value of the Company,
as we continue to expand our operation."
About O2 Secure Wireless: O2 Secure Wireless is
responsible for the development of wireless Internet facilities
across the U.S. The company's recent merger with Earthcom Service
Inc. has triggered a stream of investment into underserved markets,
including flat rate pre-paid wireless telecom services in
developing countries, and the current O2USA MasterCard
facility.
Safe Harbor Act: This release may contain
"forward-looking statements" within the meaning of Section 27A of
the Securities Act of 1933, as amended, and Section 21E the
Securities Exchange Act of 1934, as amended and such
forward-looking statements are made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995.
"Forward-looking statements" describe future expectations, plans,
results, or strategies and are generally preceded by words such as
"may," "future," "plan" or "planned," "will" or "should,"
"expected," "anticipates," "draft," "eventually" or "projected."
You are cautioned that such statements are subject to a multitude
of risks and uncertainties that could cause future circumstances,
events, or results to differ materially from those projected in the
forward-looking statements, including the risks that actual results
may differ materially from those projected in the forward-looking
statements as a result of various factors, and other risks
identified in a company's annual report.
For more information visit our
website: www.o2securewireless.com, or contact
Investor Relations: 855-222-0221
SOURCE O2 Secure Wireless, Inc.