News out on the site. Update to shareholders
Friday, 06 July 2007
A2a dividend payment
The Board is concerned that a large number of US shareholders have contacted the Company, informing the Company that they are experiencing difficulty in finding a suitable facility to be able to trade a2a shares initially planned to be paid as a dividend.
The Board has taken serious notice of these comments, and has therefore taken the decision to issue the payment in the form of free trading Pink Sheet Petel Incorporated shares. These will issued at a ratio of 1 new Petel share for every 4 Petel shares held at the close of business 16th July 2007. A new record date is necessary In order to comply with NASDAQ regulations.
This replaces any previous dividend announcements relating to the issuance of a2a shares to Petel shareholders.
The appropriate paperwork will be filed with the regulatory body on Friday July 6th 2007. The Company is currently confirming the date that the new shares will be issued with legal counsel and transfer agent. It is anticipated that the process will take approximately 14 days.
David Morton, CEO comments “Closing the deal with a2a has presented significant challenges to the management team over the past few weeks. However, it is vital that we secure the future of a2a as their core product, CubeTV, underpins SexQube.TV. We really want to deliver value to our shareholders in recognition of their support thus far, so we feel that addressing the issues that have been raised in this manner has a benefit for everyone. Whilst we would prefer not to have issued a new record date, we must do so to comply with the regulations. We are working very hard to make all the necessary filings so that we can action the dividend at the earliest opportunity and focus our attention on the continued expansion and development of SexQube.TV.”
ENDS
This news release contains forward-looking statements that are subject to certain risks and uncertainties that may cause actual results to differ materially from those projected on the basis of such forward-looking statements. The words "estimate," "project," "intends," "expects," "believes," and similar expressions are intended to identify forward-looking statements. Such forward-looking statements are made based on management's beliefs, as well as assumptions made by, and information currently available to, management pursuant to the "safe-harbour" provisions of the Private Securities Litigation Reform Act of 1995. For a more complete description of these and other risk factors that may affect the future performance of Petel, Inc. see "Risk Factors" in the Company's Annual Report on Form 10-KSB and its other filings with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date made and the Company undertakes no obligation to disclose any revision to these forward-looking statements to reflect events or circumstances after the date made or to reflect the occurrence of unanticipated events.
