MANILA, Philippines--(BUSINESS WIRE)--June 12, 2006-- Pearl Asian Mining Industries, Inc. (OTC: PAIM) announced that the exchange date will be effective June 15, 2006, for the company to buy back approximately 27,000,000,000 or 90% of its issued and outstanding common shares using a convertible debenture. After a lengthy meeting with NASDAQ, DTC and our transfer agent, it had been confirmed that there is no X-Date or record date for this buy-back exchange. Pearl Asian Mining Industries had announced last month that the record date for this action was June 1, 2006. However, no record date is required. The exchange date is going to be automatic for all shareholders holding common shares through DTC with the exchange date to be June 15, 2006. The Shareholders holding through DTC will not have to do anything in this exchange, as this will be a mandatory exchange and automatically done through the same process. A stop transfer will be placed on shares outstanding on June 15, 2006, regarding shareholders that fail to surrender 90% of their common shares for exchange on June 15, 2006. The stop transfer will not be released until those shares are surrendered in exchange for the CDs. The buy back rate is that for every common share surrendered, Pearl Asian will pay $0.001, the par value of the common shares in the form of convertible debentures, when held to the maturity of 5 years. The CD is to be paid on the 5th year without interest. The debentures can be converted back to common shares at a fixed rate of $0.01 per share at any time on or before maturity, upon surrender of the CD to the company or its transfer agent. As an example, a shareholder owning 1,000,000 common shares will keep 100,000 common shares and receive a CD with a face value of $900 due and payable in 5 years without interest. In this example, any time during the 5 years, the holder will be entitled to convert that CD to 90,000 common shares. Chairman of the Board, E. Pearl Asian, commented: "I am very optimistic about the future of Pearl Asian Mining (PAIM). The company is taking this calculated risk, going into long-term debt for the first time beginning June 15, 2006. I am certain that when the debentures become due and payable, the company's earnings will far exceed the face value of this debt. Furthermore, I also believe that this is the most creative and positive way of reducing the current outstanding public float, thus avoiding the negative impact and effect of a reverse split. We have to balance what is best for everyone concerned, for all of our shareholders and for the company as well."
Posted by amswap on :
Whew, what is that smell? Smells like more scams to me. This is nothing this company doesn't do over and over. They've made millions at shareholder expense and will continue to do so.
Posted by Jason0321 on :
they are putting 27 billion into a cd that they can return to the market at any time in the next 5 years at the current market value. Im not sure what they are doing. Its not really a buyback. they are just taking 27B off the market. IMO just stay away. Its a junk company
Posted by BuyTex on :