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Modern Technology Corp Announces Recapitalization Strategy to Prepare for Further Acquisitions and 2006 Profitability Friday May 12, 1:07 pm ET
OXFORD, MS--(MARKET WIRE)--May 12, 2006 -- Modern Technology Corp (OTC BB:MOTG.OB - News) a diversified technology development and acquisition company announced today it will recapitalize the company in preparation for its planned acquisitions throughout 2006. As part of this preparation strategy, the company will reverse split its stock 20-for-1 and reorganize all business units toward immediate profitability.
The reverse split does not affect the ownership position of any stockholder. All stockholders will continue to own the same percentage of the company as they do now.
The new ticker symbol will be MODC effective Monday, May 15th, 2006.
The company's planned acquisitions for 2006 will be structured to build equity and avoid new debt. These transactions will therefore require warrants or preferred stock convertible into Common Stock of the company. In order to affect these planned acquisitions with equity instead of additional debt, we require the warrants or the preferred stock to be 'in the money' to both mitigate shareholder dilution as well as simplify execution of the equity instruments for the new portfolio company.
Anthony Welch, Chairman, said: "We have committed to profits and growth. We are making the changes to create a profitable growing company. We have planned acquisitions for 2006 based on equity, not debt, and we take this step today in preparation. We have also initiated our efforts to realign business units toward immediate profitability. Our focus is growth based on earnings and building equity through existing operations and new acquisitions. Shareholders should expect continuing announcements of our progress."
About Modern Technology Corp
Modern Technology Corp, a diversified technology development and acquisition company, builds revenues through continuous growth, strategic acquisitions, and commercialization of nascent technology. MOTG improves operating efficiencies through the elimination of cost redundancies and realized synergy between subsidiaries. MOTG also commercializes new technology and provides to its subsidiaries new product lines, operations infrastructure, and significant intellectual capital. The company's mission is to build shareholder value through a model of continuous growth. Web Address: http://www.moderntechnologycorp.com
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GLTA, The Phat Man Posts: 1236 | Registered: Apr 2006
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