BLAINE, Wash., Aug. 14, 2012 /PRNewswire/ -- Hollund Industrial Marine, Inc. ( HIMR ) ("Hollund" or the "Company") yesterday announced that the company has begun its Dilution Reform Program (share reduction plan) weeks ahead of schedule, eliminating approximately 16.3% of the shares Issued and Outstanding . With expectations of a total share reduction of just over 40% of the issued and outstanding shares, management is confident the company will successfully retire at least 3.5 Billion shares by year end .
"Dilution is all too common in the public markets," stated Peter Meier, President of Hollund. "But when a company's management believes in itself and its insiders adopt these beliefs there is plausibly no limit to the upside potential. At Hollund, we are fortunate to have the commitment of our team – internal and external – as this reduction plan is made possible through that belief."
Hollund's Dilution Reform Program was originally slated to begin the week of September 10 th . The Company set out to retire at least 1.5 Billion shares at that time. However, according to sources close to the company, Hollund is on track to exceed the initial start amount having now retired close to 1.5 Billion common shares to date. Management expects that it will be able to retire an additional 4% by month's end with an additional 6% as of the original start date; totaling well over 2 Billion shares retired.
The company's targeted share reduction amount continues to be 3.5 Billion common shares. However, management indicates that the greater ambition is to have its share reduction efforts achieve (after retiring the greatest number of shares possible) a new total issued and outstanding share count of fewer than 4 Billion shares prior to year end. This would reflect well over 50% of Hollund's common stock being retired should the company be successful with the share reduction plan.
While the particulars of the retirement program have not yet been fully disclosed, it is said that the basis of the insider share restructuring is predominately rooted in the expectation of long term residual revenues and not the reissuance of equity.
"We believe participants in the share reduction plan recognized that while the value of the stock would be potentially immeasurable based on the sheer number of shares, the likelihood of that value ever materializing is highly unlikely due to similar reasoning; the sheer number of shares," continued Mr. Meier. "It became apparent that should Hollund continue to maintain an exorbitant number of outstanding shares, the company may become subjected to an unfavorable restructuring. This would not only be adverse to the insiders, but devastating to all of our shareholders. Also, given the tremendous opportunities having presented themselves thus far, the value we can achieve could be much greater if we remain focused and stay the course with this creative share restructuring plan."
Hollund is in the process of finalizing a number of major initiatives that management expects could be positively impacted by significantly reducing the shares outstanding. These initiatives will likely increase the scope of the company's global reach and revenue potential. With such promise, management feels compelled to act responsibly in attempting to restructure its cap table. Attempting to streamline the issued and outstanding without use of a reverse split, will be just one of the greatest benefits shareholders may receive from Hollund.
Mr. Meier concluded, "We will continue to do all that we can to build shareholder confidence and value. We look forward to the exciting synergies expected to be unveiled in the next quarter."
Additional details will be discussed during the shareholder conference call.
OTCMarkets information site has been updated and should reflect within the day.
