Viva International, Inc. Effects Reverse Split of its Common Stock and Name Change to River Hawk Aviation, Inc. with New Trading Symbol
Traverse City, MI, February 27, 2007 - It was announced today that NASDAQ has authorized the name change of the Company from Viva International, Inc. to River Hawk Aviation, Inc. and the assignment of RHWA as its new trading symbol.
On February 6, 2007, Viva International (the “Company”) effected a 1-for-40 reverse stock split of the issued and outstanding shares of common stock of the Company (the “Reverse Stock Split”) held by shareholders of the Company and effected a simultaneous amendment to the Company’s Articles of Incorporation to decrease the number of authorized shares of common stock of the Company from 1 billion to 25 million. The number of shares of preferred common stock authorized to be issued by the Company is unaffected.
Except for an adjustment which may result from the rounding up of fractional shares as described below, each shareholder will hold the same percentage of common stock outstanding immediately following the Reverse Stock Split as immediately prior to the Reverse Stock Split. The primary purposes of the reverse stock split are to reduce the number of outstanding shares of common stock to a level more consistent with the valuation of public companies with a similar anticipated market capitalization and to provide the management of the Company with additional flexibility to facilitate future stock acquisitions and financing for the Company and to increase the per share price of the common stock to maintain and attract the interest of the markets.
Calvin Humphrey, the Company’s CEO commented, “The reverse split and name change are important steps in the shift in the direction of the Company. This recapitalization is designed, in part, to enable the Company to accept capital investment and to utilize the capital so raised to create assed value within the Company’s share structure. Additionally, the name change to River Hawk Aviation redefines our image and mission and allows us to continue to leverage the positive attributes and industry recognition of the River Hawk name.”
There can be no assurance that, following the Reverse Stock Split, the Company’s valuation will be properly reflected, the Reverse Stock Split will result in an increase in the price per share of the Common Stock or that any increase in the price will be proportional to the decrease in the number of outstanding shares.
About River Hawk Aviation, Inc.
River Hawk Aviation, Inc. is an aviation parts and components supplier in the aviation industry, currently specializing in Saab and other commuter aircraft parts and components as well as a provider of consulting services, marketing and appraisals to the aviation community. At present, the Company maintains executive offices in Michigan.
The Company also focuses of the formation and development of airlines along with the acquisition of aviation-related operating businesses and airlines that displayed potential for restructuring into profitable and sustainable aviation-related growth concerns. The Company’s owns two developmental-stage airline carriers in regional markets from hubs in Puerto Rico and Santo Domingo, Dominican Republic. Our hub in Puerto Rico is maintained through our subsidiary Eastern Caribbean Airlines Corporation and our hub in Santo Domingo is maintained through our subsidiary interest in Viva Air Dominicana, S.A. The Company has recently announced a plan to merge these Caribbean subsidiaries with a U.S. transportation company and subsequently spin the merged companies out to its shareholders. This plan remains in effect.
Forward Looking Statements This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended ("the Exchange Act"), and as such, may involve risks and uncertainties. Forward-looking statements which are based upon certain assumptions and describe future plans, strategies and expectations, are generally identifiable by the use of words as "believe", "expect", "intend", "anticipate", "project", or other similar expressions. These forward-looking statements relate to, among other things, future performance, and perceived opportunities in the market and statements regarding the Company's mission and vision. The Company's actual results, performance and achievements may differ materially from the results, performance, and achievements expressed or implied in such forward-looking statements. Additional factors that could materially affect these forward-looking statements and/or predictions include, among other things: (1) managing acquisitions and expansion of operations; (2) our ability to obtain necessary financing and to manage existing debt; (3) the risks inherent in the investigation, involvement and acquisition of a new business opportunity; (4) our ability to successfully complete financing and due diligence under the River Hawk Asset Purchase Agreement; (5) the Company's ability to comply with federal, state and local government and international regulations; and (6) other factors over which we have little or no control. Further information on potential factors that could affect Viva International, Inc. is found in the Company's Form 10-K and other documents filed with the U. S. Securities and Exchange Commission.
Contact: Viva International, Inc. at (231) 932-7490
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