Shareholder Update today. Read it carefully. They have no intentions of a future Reverse Split, but they MAY have to do it.... Here we go again! Nice they took the time to explain the dilution. I still think the concept is great, but I still don't think this is one to bet the farm on. PR follows:
WGL Entertainment Holdings, Inc.: Open Letter to Shareholders
Wednesday April 4, 7:00 am ET
ORLANDO, FL--(MARKET WIRE)--Apr 4, 2007 -- WGL Entertainment Holdings, Inc. (OTC BB:WGLT.OB - News) -- I would like to take this opportunity to address many issues which are of concern to our valued shareholders. As we have seen over the past several weeks, our share value has declined steadily although we have made several exciting and revenue producing deals for our Million Dollar Shootout Reality Television Series.
The dilution and decline is most directly a result of a Stock for Debt exchange we have in place with a funding source. This Exchange Agreement was fully disclosed in an 8K filing on 12/26/06. This can be viewed at www.sec.gov. The agreement allows the holder to convert shares of WGLT for cash until the note is paid in full. We are actively seeking a bridge loan to pay the note in full to eliminate the note and stop the dilution and selling of WGLT shares.
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In addition to the note, the company has issued approximately 70,000,000 shares for legal and accounting services to keep the company current on its SEC reporting requirements. Future payments for these types of services will be made in cash from expected revenues. The company has no plans to do any further Reverse Splits and will begin buying back shares from the open market as revenues from Europe and Asia are realized. However, if market support erodes and there is no longer trading activity, a Reverse Split is the only option to recreate a market for our shareholders.
I would like to further state, that I as CEO have not sold or intend to sell any shares and in fact only own 37,000,000 shares. I have personally loaned the company over $400,000 over the past year and take little to no salary. I am working very hard on your behalf to make the MDSO a success and believe that we will succeed in the long term. We have an outstanding product that will gain momentum and eventually air in the U.S. Market. After all, it took three years for "American Idol" to be sold in the U.S. market.
The current situation is very frustrating; I am doing all I can to resolve the situation and will continue to work very hard on behalf of our shareholders. WGLT has a very real product with a business model that can and will succeed.
Thank you for your continued support...
Michael S. Pagnano
CEO,
WGL Entertainment Holdings, Inc.
WGL Entertainment Holdings, Inc., through its subsidiary WGL Entertainment, is the producer of the WGL Million Dollar Shootout Reality Television Series and several other made for T.V. sports entertainment events scheduled to be produced in 2007 and beyond.
To the extent that statements in this press release are not strictly historical, including statements as to revenue projections, business strategy, outlook, objectives, future milestones, plans, intentions, goals, future financial conditions, future collaboration agreements, the success of the Company's development, events conditioned on stockholder or other approval, or otherwise as to future events, such statements are forward looking, and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The forward-looking statements contained in this release are subject to certain risks and uncertainties that could cause actual results to differ materially from the statements made.
Contact:
For more information contact:
Michael Pagnano
WGL Entertainment Holdings, Inc.
1-407-328-8538
Source: WGL Entertainment Holdings, Inc.
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