OTOW News .0001
O2 Secure Wireless, Inc. Announces Completion of 1-for-1000 Reverse Split of Common Shares
2012-12-07 15:23 ET - News Release
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."
