Is this throwing good money after bad???
BLACKOUT MEDIA CORP (U-BKMP) - News Release
Blackout Media Corp. Announces Conversion of Preferred Share Dividend Stock
2007-02-12 09:47 ET - News Release
TORONTO -- (MARKET WIRE) -- 02/12/07
Blackout Media Corp. (PINKSHEETS: BKMP) -- On February 9th, 2007 the Board of Directors of Blackout Media Corp. approved the conversion of the preferred shares (that shareholders received as a result of the dividend in September 2006) of Blackout Media Corp. to restricted Common stock of the company.
The conversion is as follows:
For every 1,000,000,000 (1 billion) preferred shares of Blackout Media you own you have the right to buy 1,000,000 restricted common shares of Blackout Media (BKMP) Corp. stock along with the payment of $150.00 to Blackout Media Corp.
To help explain this conversion here is an example:
Let's assume you own 10,000,000,000 (10 billion) preferred shares and you wanted to convert all them into restricted common stock.
10,000,000,000 entitles you to convert to 10,000,000 restricted common shares plus the payment of $1,500.00.
This is how the math works:
10,000,000,000 / 1,000,000,000 = 10
(This is how many 1 million shares you can buy by converting you preferred shares)
10 x 1,000,000 = 10,000,000
(This is how many restricted common shares you would get if you converted all your preferred shares to restricted common shares)
10 x $150.00 = $1,500.00
(This is how much you need to send to the company to pay for the conversion)
If you are interested in converting your preferred shares to restricted common shares you need to send your preferred shares to the transfer agent along with your payment.
The payment MUST be made out to the transfer agent not to Blackout Media Corp. as they will be acting as the agent on this conversion for the company and handling the entire transaction.
Here is the transfer agent's information:
American Heritage Stock Transfer Inc.
4248 Merck Rd
Wilson, NC 27893
USA
Attention: Jason Green
919-827-4118
A letter to the shareholders will be mailed out this week further explaining the opportunity to convert your preferred shares to restricted common shares.
This is a mandatory conversion -- but should you not exercise your right to convert then on April 30th, 2007 your preferred shares become null and void.
But if you are interested in doing this you MUST do it by April 30th, 2007 after which the company will no longer accept your preferred shares for conversion and they will become worthless.
One final point that needs clarification is if shareholders have less then one billion (1,000,000,000) preferred shares the company is allowing you to convert as if you had the minimum preferred shares for conversion being the one billion (1,000,000,000) preferred shares. This allows a shareholder to purchase one million (1,000,000) restricted common shares for $150.00. In addition should any shareholder have an in-between amount of preferred shares they are allowed to round up to the next billion for conversion purposes only. In other words -- you can round up your preferred stock to the next billion shares for conversion purposes to allow you to maximize the amount of restricted common stock you can purchase through this process.
About Blackout Media Corp.:
Blackout Media Corp. is a holding company with an interest in Blackout Communications who is a diversified media and entertainment company conducting operations in digital television, VOD, PPV, radio the Internet and print under the brand name "The Fight Network." The activities of Blackout Media Corp. are conducted principally in Canada and the United States.
Safe Harbor
Certain statements in this news release may contain forward-looking information within the meaning of Rule 175 under the Securities Act of 1933 and Rule 3b-6 under the Securities Exchange Act of 1934, and are subject to the safe harbor created by those rules. All statements, other than statements of fact, included in this release, including, without limitation, statements regarding potential future plans and objectives of the company, are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Technical complications that may arise could prevent the prompt implementation of any strategically significant plan(s) outlined above. The company cautions that these forward-looking statements are further qualified by other factors. The company undertakes no obligation to publicly update or revise any statements in this release, whether as a result of new information, future events or otherwise.
Media Contacts:
Stephen Murdoch
OEB International
Public Relations/Public Affairs
Tel: (905) 682-7203 extension 22
Fax: (905) 682-7481
E-mail: smurdoch@oeb.com
