HOLLYWOOD, Calif., May 20, 2011 (GLOBE NEWSWIRE) -- On May 18, 2011 Gener8xion Entertainment (Pink Sheets:GNXE) agreed to the entry of an order with the SEC that has changed the registration status of the company's common stock. The Company has acknowledged to the SEC that it has failed to comply with the periodic reporting requirements, as required by the Exchange Act. After the entry of the SEC order, the common stock of Gener8xion Entertainment, Inc., will no longer be traded on the Pink Sheet Over the Counter Market.
The following is intended to answer questions of Gener8xion Entertainment shareholders:
1. How did Gener8xion Entertainment stock become deregistered?
The Company was required to file periodic reports (Forms 10-K, 10-Q and 8-K) with the SEC. The periodic reports required compliance with numerous rules and regulations, as well as the continued preparation of audited financial statements. The Company stopped filing reports with the SEC in 2008. The SEC filed an action to deregister the Company stock. The Company acknowledges that the reports were not filed, and therefore agreed to the entry of an order by the SEC that has resulted in the stock being deregistered effective May 19, 2011.
2. Why did the Company agree to the deregistration of its stock?
The Company reviewed the situation carefully. After much consideration, the Company determined it would not be able to successfully defend itself against the SEC action, and determined that the best use of the resources the Company has available would be to continue to pursue the main business of the Company, which will maximize the value of the Company.
3. Do I still own stock in Gener8xion Entertainment?
Yes, the stock deregistration has no effect upon your status as a shareholder. You still own the same number of shares. There is, however, no public market available for trading and valuation of the Company stock.
4. Can I still sell my Gener8xion Entertainment stock?
Yes. Your stock may be sold in private transactions.
5. Is Gener8xion Entertainment now a private company?
No. The company still has shareholders. The management and board of the company are still responsible to the shareholders.
6. Is Gener8xion Entertainment going out of business?
No. The Company will continue to operate as it did prior to the stock deregistration. The Company will continue to pursue new projects and complete the projects currently underway.
7. How can I expect to receive information about Gener8xion Entertainment in the future?
The Company expects to provide its shareholders with information through its website,www.8x.com. The Company will, from time to time, provide updated information in the form of newsletters from the CEO. In addition, the Company may provide financial statements, which will be unaudited and not have the level of detail required of an SEC registered and reporting company. The Company expects to continue to issue news releases concerning material developments, though some events which were the subject of press releases in the past may not be included in future press releases.
CONTACT: Ron Heineman 323-874-9888