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NEW YORK, Oct. 28, 2010 (GLOBE NEWSWIRE) -- Sibling Entertainment Group Holdings, Inc. (Pink Sheets:SIBE) (the "Company") provides this corporate update to current and prospective shareholders.
"The Company is currently undergoing a full review of its financial and operational areas and announces that it intends to update its regulatory filings over the next ninety (90) days. In the interim, the following information provided by the Company should prove helpful to shareholders," stated Mr. Maxwell, the Company's Chief Executive Officer.
The current address of the Company is Sibling Entertainment Group Holdings, Inc., 333 Hudson Street, Suite 407, New York, New York 10013, Phone: 212-414-9600
Current Officers and Directors:
Mitchell Maxwell, President, CEO and Director since June 2007
Richard Bernstein, Director since June 2007.
Issued and Outstanding Stock and Warrants (as of September 30, 2010):
Total Outstanding Common Stock – 25,989,816
Total Outstanding Warrants – 12,190,000, with exercise prices from $.05 to $1.25.
Stock Ownership of Officers and Directors:
Mitchell Maxwell - 3,500,000 shares, 13.47% of outstanding stock
James Cardwell – 1,500,000 shares, 5.77% of outstanding stock
Richard Bernstein – 107,800 shares, 0.41%.of outstanding stock
Debenture Obligations; Litigation:
In 2007, the Company raised $2.55 million under a Private Placement Memorandum. The debentures offered a 13% coupon and became due in June 2009. As of the due date, the Company was delinquent in paying both the principal and interest due to the debenture holders. A group of debenture holders filed a complaint against the Company in early 2010, seeking immediate payment of principal and interest. This group received a default judgment shortly thereafter. The total owed to all debenture holders, including interest as of September 30, 2010, is approximately $3,518,550.
Upon execution of the default judgment, the Company considered filing for protection under bankruptcy law. However, in order to best protect the debt holders and all shareholders the Company has, and is currently examining alternatives, including merging with another company, to address this default judgment. The Company is keeping the debenture holders appraised of the Company's efforts and expect their cooperation moving forward.