Franchise Holdings International, Inc. Creates New Preferred "Series A" Share StructureNew share class maintains management's voting control of Franchise Holdings International, Inc.
TORONTO, ON -- (Marketwired) -- 07/05/17 -- Franchise Holdings International, Inc.(FNHI), the parent company of Truxmart LTD Inc., an innovative manufacturer of high quality, functional, and aggressively priced tonneau covers for the light truck market, received board approval for the creation and issuance of 1,000,000 new shares of a Series A preferred stock. The purpose of the new share class is to tighten FNHI's capitalization, while maintaining CEO Steven Rossi's voting control over FNHI, in addition to accomplishing other management objectives.
Presently, FNHI currently has issued only "common shares" with one vote per share, as a single share class. Rossi, as CEO, holds FNHI voting control by owning 112,000,000 of the 222,787,240 shares issued and outstanding. Rossi intends to retire up to 100,000,000 of his 112,000,000 FNHI common shares, while issuing preferred shares, reducing the FNHI issued and outstanding shares by up to 45 per cent. Each preferred share will vote the equivalent of 299 votes per 1 common share.
"This new share structure is just one step of many along our clear path and vision towards our future success," Rossi commented, in explaining the board's action today. "Revenues and profits are what compensates me for my work, not by selling my FNHI ownership."
Shareholders have spoken, Rossi said, "And I always listen."
The process required an PRE 14C Information Statement filing, covering proposals by security holders whose actions do not require proxies and an SEC filing DEF14C, which is expected to start this month and requires 30-60 days to complete and file with the State of Nevada.