Sitestar Corporation (SYTE) , an Internet Service Provider (ISP) and computer services company, today announced that it has fulfilled the obligations set forth in the convertible debenture settlement agreement. The remaining balance of $259,734 was paid in cash.
Frank R. Erhartic, Jr., CEO of Sitestar Corporation, commented, "We are thrilled to finally get this behind us. Since I became CEO of the company over two years ago, settling this convertible debenture issue has been one of my top goals. The convertible debentures caused our shares to become diluted and our stock price has suffered. By eliminating this type of financing, we should no longer have to sell our shares at a significant discount to pay off debt. I believe our company is much stronger now."
"It feels good to pay off the last remaining liabilities associated with the convertible debentures," says Daniel Judd, CFO for Sitestar. "Having resolved this issue, we can now give our full attention to providing our shareholders with value. This situation has been resolved without any additional adverse effects on the results of operations."
Sitestar Corporation issued one million dollars worth of convertible debentures in 2000. Since then, the stock plummeted from about $1.00 per share to a low of $0.006. Over the last year, the stock has seen an increase of well over 500 percent.
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