In Effort to Further Minimize Dilution, All Preferred C Shares -- Issued or In Treasury -- Are to Be Re-Priced
BLAINE, WA--(Marketwired - Mar 7, 2014) - Hollund Industrial Marine, Inc. (PINKSHEETS: HIMR) ("Hollund" or the "Company") an underwater forest management company, announced today that the Company intends to adjust all remaining Preferred C Shares as part of an ongoing strategy to repress indiscriminate dilution.
"At Hollund, we are committed to improving shareholder confidence and enhancing long-term value," stated Peter Meier, President of Hollund Industrial. "Over recent months, management has been successful at achieving dramatic reductions in the outstanding Preferred C shares. With respect to the largest shareholder in this preferred class, we have reduced that amount to less than 1% of the original position. Moving forward, we will remain proactive to ensure that we do not end up in a hyper-dilutive situation in the future."
While the Company has not yet confirmed the method by which it will seek to adjust the Preferred C shares, it can confirm that the conversion rate on any and all remaining Preferred C shares will be reduced by a significant amount. This includes shares currently in treasury yet to be issued.
Mr. Meier continued, "Our primary objective is to avoid further unwarranted dilution. With timber recovery operations soon to commence, the growth and health of this company will partly depend on the stability of the corporate structure and the faith of its investors. We believe a responsible adjustment to this share class is needed to help ensure both."
Mr. Meier concluded, "While it may not be appropriate to eliminate this entire class of stock, it is certainly fair and equitable to bring the intrinsic value of our Preferred C shares in line with the general market. We hope to make this adjustment prior to our next filing this month. However, we do certainly anticipate this change will be reflected in our first set of audited statements."
About Hollund Industrial Marine, Inc.
Headquartered in Blaine, WA, Hollund Industrial Marine Inc. (PINKSHEETS: HIMR) seeks to align the interests of businesses, communities, utilities and governments by offering an integrated business model for underwater forest management. Hollund's model -- including resource and needs assessment, permitting, environmental and project planning, logging, milling, product branding and sales adds value for our shareholders, our partners and reservoir based communities.
This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (the "ACT"). In particular, when used in the preceding discussion, the words "estimated," "believe," "optimistic," "expect," and similar conditional expressions are intended to identify forward-looking statements within the meaning of the ACT and are subject to risks and uncertainties, and actual results could differ materially from those expressed in forward-looking statements. Such risks and uncertainties include, but are not limited to, unfavorable market conditions, increased competition, limited working capital, and failure to implement business strategies, actions by regulatory agencies, and other risks.
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