OT FGFC a better buy at this point $.02 huge news
First Guardian Financial Corporation Board Moves to Reduce Authorized Shares & New Common Share Structure
First Guardian Financial Corporation (Pink Sheets: FGFC) today reported that its Board of Directors has adopted a resolution on Tuesday, June 6, 2006, to reduce the Company's authorized shares of common stock by 320 million shares.
The reduction will lower First Guardians Financial Corporations authorized common shares from 520 million to 200 million of which (101,252,132 shares are restricted and in managements control) leaving 98,917,952 common shares available. "This resolution reflects the commitment of First Guardian Financial Corporations management and Board of Directors to restrict any dilution and build value for our current and future shareholders," commented Abraham Rosenman, President
The company has issued an additional 59,681,800 million common shares for the acquisition of Buysellmerge.com, Windsor Capital Ltd. and the establishment of Trafalgar Leasing & Finance Corporation thus after the issuance of said shares the current issued and outstanding/float stands at 78,331,916 shares.
At the same meeting, the board of directors agreed to review certain proposals to establish/obtain a revolving line of credit of up to ($10,000,000) million dollars to be used for development, growth and working capital for the company's current entities, the board of directors also agreed to continue its banking relationship with JP Morgan Chase.
"The company has taken this share restructuring to increase the value of our share price, as we believe that the company at this point is extremely undervalued and does not reflect the true value/market cap. We do not intend to increase the share structure for further growth, instead we will use revenues and traditional bank financing to grow the company going forward." Said Abraham Rosenman President
About First Guardian Financial Corporation:
