SAKL: How many Pennies have NO toxic debentures that can be converted into common shares on their books?
SALT LAKE CITY, UT--(Marketwired - Sep 23, 2015) - Sack Lunch Productions, Inc. (OTC PINK: SAKL), a publicly traded entertainment company with operations in event management and film, announced today that its board of directors and the majority shareholder has approved an action to decrease its authorized shares from 25 Billion to 990 Million shares. The necessary documentation to decrease its authorized shares including notices and the amendment to its articles of incorporation has been filed with the State of Utah. The action will become effective no later than October 15, 2015 with the state.
The move to decrease the authorized shares comes just after the company approved the buyback or cancellation of 614,000 shares of its Series C Preferred shares. Of the shares approved for cancellation, 369,072 have been redeemed. Each of the Series C Preferred shares had a stated value of $5.00 per share that was convertible into common shares. The remaining shares are subject to rigid conversion restrictions. In addition, nearly $700,000 worth of debt was extinguished from our balance sheet.
As a result of being able to write off the debt and the redemption or cancellation of the Series C Preferred stock, the board is able to reduce the authorized shares without any adverse effect to its balance sheet.
Richard Surber, CEO, of SAKL, stated, "There are no toxic debentures that convert into common shares of SAKL on its books. I want to reiterate that I expect further significant improvements to SAKL's balance sheet, statement of income, and statement of cash flows in the third quarter and for the year ending December 31, 2015."
Mr. Surber continued, "It should also be noted that no insiders can sell any shares into the open market until SAKL files a registration statement with Securities and Exchange Commission. Our plan is to bring SAKL back to fully reporting status as soon as possible and immediately up list to OTCQB. I have my eye on a listing with the American Stock Exchange or NASDAQ Small-Cap. I believe we will be able to meet the requirements at the close of 2016 based upon our current projections."
