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Megola Inc. (OTCBB: MGON) has provided an update of its Share structure as Series B and Series A Preferred Shares have been eligible for conversion to Common Stock since April 30, 2010 and May 29, 2010, respectively. |
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0.0049
As of July 6, 2010, the Common Share structure for Megola is as follows:
Authorized: 200,000,000 Outstanding: 29,998,905 Restricted: 7,099,087 Float: 22,899,818"Megola is confident that with the reduction in free trading common shares following the Preferred Offerings and subsequent reverse split, along with management's recent decision to hire an Investor Relations firm, La Jolla, IPO, Inc., its shareholders may find future rewards for their long term patience as the company continues its product development and works towards generating consistent revenues and future profitability," commented Joel Gardner, Megola President and CEO.
Management of Megola have committed to holding 852,376 shares of the remaining 1,215,087 Series A Convertible Preferred Stock. These holdings, which upon conversion equate to 21,309,400 Common Shares out of the possible 30,377,175, represent 70% of the remaining shares eligible for conversion. Management also holds 7,031,800 of the current restricted common shares outstanding.
A holder of Series A Convertible Preferred Stock is entitled to cast one hundred (100) votes for each Series A Convertible Preferred Stock held.
As a holder of the Series A Convertible Preferred Stock, the holder may purchase up to ten (10) common shares for every one (1) Series A Convertible Preferred Stock they hold at a price of forty-five cents ($0.45) per share. These Warrants can be exercised within a twenty-four (24) month period ending on May 29, 2011. These Warrants can only be exercised if the shareholder is still a holder of the Series A Convertible Preferred Stock. Warrants will be subject to SEC regulated holding period.
There are 31,000 shares of Series B Preferred Stock remaining. Full conversion of these shares will result in an additional 3,100,000 common shares added to the float. Holders of Series B Convertible Preferred Stock do not have voting rights or warrant options.
Megola has posted links to information and instructions pertaining to the conversion process on its website at www.megola.com/investor.htm.
For more information on Megola, please visit: www.megola.com.Shareholders and investors are strongly cautioned against placing undue reliance on information set forth in these communications in making any investment decisions concerning our securities.
The matters set forth in this press release are forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially. These risks are detailed from time to time in the company's periodic reports filed with the Securities and Exchange Commission including the company's Annual Report, Quarterly Reports and other periodic filings. These forward-looking statements speak only as of the date hereof. The company disclaims any intent or obligation to update these forward-looking statements.
