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GlobeTel Announces Approval to Move to the American Stock Exchange and Continuation of Corporate Restructuring Monday May 9, 3:52 pm ET
FORT LAUDERDALE, Fla.--(BUSINESS WIRE)--May 9, 2005--GlobeTel Communications Corp. (OTCBB:GTEL - News) announced today that, by written consent of the majority vote of its shares, the Board of GlobeTel has approved a reverse split of its shares on a one for fifteen (1:15) basis. This restructuring move is being made as part of the Board's overall strategic plan. ADVERTISEMENT
Timothy Huff, CEO of GlobeTel, stated: "This capital restructuring is consistent with the overhauling of our various business segments and will place our capital structure and share price to be more in line with a business of our stature, and the credibility of our business standing. This reverse split is being made immediately prior to our move to the American Stock Exchange."
Huff continued: "We are very pleased and excited to be approved to list our shares on the AMEX. The AMEX has an excellent reputation and history and we are looking forward to this next step in our overall plan."
GlobeTel has notified the NASD of the pending reverse split and it is planned that the shares will begin trading (post reverse) on the American Stock Exchange on May 19, 2005. GlobeTel has reserved a future trading symbol with the American Stock Exchange. At the time of the move, GlobeTel will change its symbol from GTEL to GTE.
Mr. Huff stated: "We are a vibrant and growing company and believe that our business initiatives are growing at our desired rate and we are pleased with the success and confidence that our shareholders have placed in us. Our significant success with our Stratellite release today shows that. This decision is one further step toward our continued success. While many companies reverse-split their shares because they are in trouble, we do not fall into that category. I want to stress to our shareholders that this decision is in the best interests of the Company and the shareholders. We are all excited about the future of GlobeTel and our shareholders."
About the American Stock Exchange:
The American Stock Exchange has been a pioneer in market innovation for more than a century and remains committed to developing successful new investment products and innovative services for companies and investors.
As the nation's most diversified financial marketplace, the American Stock Exchange conducts trading through an advanced centralized specialist system and is committed to providing a superior marketplace for the investing public and its members.
The following is for illustration purposes only:
If a shareholder owns 15,000 shares of GTEL at a price of .27 per share (for a total value of $4,050.00), following the reverse split, that same holder would own 1,000 shares of stock with a theoretical price of $4.05 per share for a total value of $4,050.00. The illustration is that the total value of shares may not change as the number of shares owned will.
About GlobeTel Communications Corporation:
GlobeTel Communications Corporation is a diversified Telecommunications and Financial Services Company. GlobeTel Communications Corporation operates business units in Stored Value debit cards, as a certified MasterCard processor, the sale of Carrier grade VOIP of Long Distance to major Long Distance re-sellers, VOIP Technology and development, and high altitude airship research and development. These self contained business units were developed to operate independently of each other. The symbiotic relationship however, provides value to each of the other business units. This strategy offers GlobeTel financial diversity and risk mitigation while striving toward its operating objectives.
Operating on a global basis, GlobeTel has, historically, focused its business development on markets outside of the United States. Current operations and business relationships exist in Asia, Europe, South America, Mexico and the Caribbean.
-------------------- Just the facts, ma'am. Posts: 1083 | From: New Jersey | Registered: Mar 2005
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GTEL Announces First Quarter 2005 Results Monday May 16, 7:50 am ET Reports Significant Improvements
FT. LAUDERDALE, Fla.--(BUSINESS WIRE)--May 16, 2005--GlobeTel Communications Corp. (OTCBB: GTEL - News), reported today in its filing of SEC Form 10Q, that during the quarter ended March 31, 2005, the company had revenues of $18,010,643 resulting in a net loss of $3,600,054. In comparison, the company had revenues of $3,210,333 for the quarter ended March 31, 2004 with a net loss of $1,298,567. In comparison to the fourth quarter of 2004, the company is providing the following information:
Timothy Huff, CEO of GlobeTel, stated, "We are pleased with our overall performance and our increase in shareholder value. We will continue to incur losses as we grow out our business, however, we expect the losses to diminish, quarter over quarter. We are also pleased that our numbers that we wanted increases in, increased and those numbers that are supposed to go down went down. Revenues and margins are up. G&A costs and net losses are down. We are exceptionally pleased with the overall financial health of the Company as evidenced by the significant increases in our Total Assets and our Stockholders Equity."
General and administrative costs reported by the company include extraordinary expenses and other non-recurring expenses of approximately $1.87 million. Excluding these costs, the actual operating costs were less than $1.65 million.
Mr. Huff continued, "Our revenues for the FY 2004 were over $29 million and this quarter alone, we had over $18 million. This puts us on our projected run rate of approximately $72 million. As we grow, we will continue to incur one-time charges that will ultimately help the profitability of our company. While the costs have decreased from the last quarter, they are still significant as the company continues to be in an expansion mode."
The company has been building its operations and has been hiring quality personnel to prepare for the future and will be adding additional office spaces at its headquarters which will almost double its current office spaces. Likewise, the company's wholly-owned subsidiary, Sanswire Networks, LLC, is also expanding, hiring high-level aerospace engineers and numerous staff for the build-out of its Stratellite and will be moving to bigger facilities at its new location at Palmdale, California.
Mr. Huff concluded, "The Company is stronger than it has ever been and we continue to have institutional investors invest in the company. We are in the midst of revamping our organization and improving our operations as part of our overall goal of reaching breakeven and then profitability by the end of 2005. With all these significant changes and our move from the OTCBB to the American Stock Exchange in the immediate future, it will be truly exciting times at GlobeTel and especially for our shareholders."
About GlobeTel Communications Corporation:
GlobeTel Communications Corporation is a diversified Telecommunications and Financial Services Company. GlobeTel Communications Corporation operates business units in Stored Value debit cards, as a certified MasterCard processor, the sale of Carrier grade VOIP of Long Distance to major Long Distance re-sellers, VOIP Technology and development, and high altitude airship research and development. These self contained business units were developed to operate independently of each other. The symbiotic relationship however, provides value to each of the other business units. This strategy offers GlobeTel financial diversity and risk mitigation while striving toward its operating objectives.
Operating on a global basis, GlobeTel has, historically, focused its business development on markets outside of the United States. Current operations and business relationships exist in Asia, Europe, South America, Mexico and the Caribbean. Additional information concerning other areas and topics of GTEL can be found on our web site at http://www.globetel.net
Certain statements in this release constitute forward-looking statements or statements which may be deemed or construed to be forward-looking statements within the meaning of the Private Placement Act of 1995. The words "forecast", "project", "intend", "expect", "should", "would", and similar expressions and all statements, which are not historical facts, are intended to identify forward-looking statements. These forward-looking statements involve and are subject to known and unknown risks, uncertainties and other factors which could cause the Company's actual results, performance (finance or operating) or achievements to differ from future results, performance (financing and operating) or achievements expressed or implied by such forward-looking statements. The above are more fully discussed in the Company's SEC filings.
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