UPDA Board Approves Spin Off to Shareholders - One Share of Continental Fuels, Inc. Subsidiary to be Distributed for Every 50 Shares of UPDA
The Board of Directors of Universal Property Development and Acquisition Corporation (OTCBB:UPDA) (FWB:UP1) (BCN:UP1) (GER:UP1) (MUN:UP1) (STU:UP1), has approved a resolution to spin off a portion of its holdings in Continental Fuels, Inc. (OTCBB:CFUL) (FWB:CNDI) (GER:CNDI) (BCN:CNDI) to UPDA’s common stockholders of record on July 11, 2007, the second anniversary of UPDA’s launch as an energy development company.
According to the Board Resolution, one share of CFUL common stock will be distributed to UPDA’s common stockholders for every 50 shares of UPDA common stock held. Every UPDA common stockholder will receive at least one CFUL share in this distribution and fractional shares will be rounded up to the nearest whole number. The date of the distribution will be August 1, 2007 to UPDA’s common stockholders of record on July 11, 2007.
Although the distributed shares will be restricted from transfer for one year pursuant to SEC Rule 144, UPDA has obtained an opinion that the shares will have no tax consequence to the recipient until they are sold or transferred.
“We have come a long way in just two years and this distribution allows the shareholders to benefit from UPDA’s growth in a tangible way,” reports UPDA Chairman Kamal Abdallah. “It also allows the Board to underscore the value that the company has been developing since its inception. The spin-off of this portion of CFUL shares represents only about 2% of UPDA’s net assets according to an internal review.”
