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Los Angeles, California, Sept. 22, 2013 (GLOBE NEWSWIRE) -- Embarr Downs, Inc. (OTC: EMBR) annouces that today the company released a letter to shareholders from its Chief Executive Officer.
As you may or may not be aware, Embarr Downs, Inc. recently completed a reverse merger whereby the Company's name was changed from Globalgroup Investment Holdings to Embarr Downs and the Company's ticker was change from GIHI to EMBR. As part of the reverse merger, the Company began the process of filing a Form 10 with the United Stated Securities and Exchange Commission. The Company filed the Form 10 with the SEC on September 18, 2013. As part of the Form 10 process, the Company's management set forth its long term goals. While reviewing these long-term goals and the capital requirements for this growth, the Company determined that the current capital structure created by the previous management was not ideal. As part of this restructuring plan, the Company decided to change the current capital structure by reversing the Company's common stock by a ratio of 50,000 to 1 and to reduce the authorized number of common shares from 4.45 Billion to 500 Million. These steps were necessary for the company to establish a sustainable and defensible capital structure that will help give Embarr the long-term credibility needed in the market.
As part of the reverse split, the Company will issue to shareholders of record immediately prior to the reverse Series B Preferred Stock, with a face value of $1.00. Each shareholder shall receive 1 share of Series B Preferred Stock for each 2,500 common shares owned (for an effective price of $.0004 per common share or 100% increase from the closing market price on September 20, 2013). Any fractional shares shall be rounded up. For illustrative purposes only, the following table shows the number of shares a common stock holder would receive of our Series B Preferred Stock.
Common Shares Owned
Number of Preferred Shares
The Preferred Stock shall be mandatorily converted by the Company no later that August 31, 2018. The conversion ratio shall be equal to $1.00 divided by the closing market price on the date of conversion.