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Raven Moon Announces Revision to Warrant Exercise Window and Reverse Stock Split Business Wire - February 10, 2006 08:31
ORLANDO, Fla., Feb 10, 2006 (BUSINESS WIRE) -- Raven Moon Entertainment, Inc. (OTCBB:RVMN) today announced that the exercise window for its previously announced 75-for-1 warrant dividend has been changed to February 18 through April 18, 2006. The record date for the warrant dividend remains February 10, 2006. The company also announced a 1:75 reverse stock split with an effective date of February 17, 2006.
"The recent 5-for-1 forward split and continued low share price has caused our Board to approve a reverse split so that an ask price and a bid price can be tracked by our shareholders on Yahoo, Alphatrade, or Scottrade," said Joey DiFrancesco, Chairman and CEO of Raven Moon Entertainment. "The reverse split will have the effect of reducing the number of shares and correspondingly increasing the price per share. The net effect of the change in the exercise window for the warrants and the reverse split will be to leave those shareholders who exercise warrants with the same number of shares, although they will have supported the company's long-term efforts by having exercised their warrants."
Mr. DiFrancesco continued, "Our overarching goal is to provide value for our shareholders by building a profitable company. Our business model requires a great deal of investment to generate interest in our Gina D brand and we have made progress, although we are not yet generating recurring revenue. We are working to put the company in the position of generating sustainable profits that will eventually be rewarded by the market. In the meantime, we are grateful to our shareholders for helping us continue to grow the company."
Time line
February 10, 2006 - record date for 75-for-1 warrants. Shareholders receive one warrant for every one share held at this date. Each warrant allows shareholders to purchase 75 shares at a 25% discount to the bid price on the day the shareholder writes a check to purchase the shares.
February 17, 2006 - effective date for 1:75 reverse split. Shareholders will have the number of shares they hold reduced by a 1:75 ratio.
February 18 through April 18, 2006 - exercise window for 75-for-1 warrants.
Terms of 75-for-1 Warrants
The terms of the warrant dividend are: shareholders of record as of February 10, 2006 shall receive 1 warrant for each share of common stock owned as of that date. The warrant allows the shareholder to exercise 75 shares of common restricted stock for each warrant they own and exercise during a two-month window beginning February 15, 2006 to April 15, 2006 at a 25% discount of the closing bid price on the day their check is dated. Common shares purchased as a result of exercising warrants will be restricted for one year. The company does not intend to charge a fee to process the warrants exercised.
Instructions for Exercising the 75-for-1 Warrants
Between February 18, 2006 and April 18, 2006, if your account is with a broker and you have not received a physical warrant, have the broker send a letter to Raven Moon Entertainment, 120 International Parkway, Suite 220, Heathrow, FL 32746 no later than April 18, 2006 verifying the number of shares you owned in your account as of February 10, 2006. Indicate the number of warrants you would like to exercise at a 25% discount of the closing bid on the day you write your check and make it payable to Raven Moon Entertainment, Inc.
If you have received a physical warrant from the company, fill it out and indicate the number of warrants you wish to exercise at a 25% discount of the closing bid on the day you write your check and make it payable to Raven Moon Entertainment, Inc. Upon receipt, the company will authorize the transfer agent to issue the shares to you.
About Raven Moon Entertainment, Inc.
Raven Moon Entertainment, Inc. is involved with the production of family entertainment programs for television, VHS tapes, DVDs, music CDs and related toys. Raven Moon has produced 24 episodes of Gina D's Kids Club(R), which started airing in September 2004 and is currently carried on 227 television stations nationwide. In November 2005, the company signed an exclusive agreement with public television station WPBT-Miami to offer the programs through American Public Television (APT) to public stations across the country for a June 2006 launch.
Safe Harbor Act Notice: This release may contain forward-looking statements that involve risks and uncertainties, including without limitation, acceptance of the company's products, increased levels of competition, product and technological changes, the company's dependence upon financing and third-party suppliers, and other risks detailed from time to time in the company's federal filings, annual report, offering memorandum or prospectus. Specifications are subject to change without notice.
SOURCE: Raven Moon Entertainment, Inc.
For Raven Moon Entertainment, Inc., Orlando Fahlgren Mortine Investor Relations Carol Merry, 614-825-1750 carol.merry*fahlgren.com
Copyright Business Wire 2006
-------------------- Trading is a blast!! Posts: 4921 | From: Rhode Island | Registered: May 2005
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Another company with no money, building itself on the backs of those foolish enough to invest in it. Forward split, reverse split, warrants, all of it with no hope of ever going anywhere. IMO, this company needs to be investigated as a scam and shut down immediately, before they can do more harm to it's shareholders.
-------------------- If I give you bad information, please feel free to sue me. I have nothing left anyway. Ed Posts: 1772 | From: Oxford, PA, USA | Registered: Oct 2004
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Figured this was coming. My 650,000 shares will become 8666 shares. I guess it wont be bad if the stock is worth a couple of pennies then I can bail.
Posts: 167 | Registered: Dec 2005
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5:1 F/S on Jan 31 '06 and R/S on Feb 10 '06 (2 weeks) - I pity that poor retarded management. Sounds like PCCR/PCCN/PCCE/PCC? like scam
Posts: 27 | From: St. Louis, MO | Registered: Nov 2005
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Also, when "new" threads repeatedly pop up? somebody's prolly trying to dodge the DD from the previous thread...in this case, there were many comments about these guys screwing shareholders repeatedly in the previous thread...
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