Before posting info like this - make sure you have closely read the PR. It plainly says that the 1 for 1500 consolidation will be common stock not restricted preferred.
After the consolidation, the company will then issue to stockholders "a restricted preferred stock dividend to shareholders." This would be in addition to the common shares each stockholder already owns after the consolidation.
This does not mean that there isn't something sketchy going on, but they aren't taking away stockholder ability to sell the shares that have been consolidated.
TidalWave Holdings, Inc. (PINKSHEETS: TDWV) today announced a special consolidation of its common shares, planned reduction of its common authorized shares, and planned preferred share dividend for common shareholders.
Management believes that it is in the best interest of shareholders to increase the per-share value of TidalWave stock to create broader market appeal and liquidity for existing positions. To accomplish this, the company will provide shareholders one (1) new share of TidalWave common stock for each fifteen-hundred (1,500) shares they currently own.
As a provision to preserve round-lots and provide increased value to existing shareholders, management has resolved that shareholders holding less than 750,000 shares but at least 30,000 shares as of the effective date will not be reduced below 500 common shares as a result of the split.
No fractional shares will be issued; shareholders with more than 500 shares post-consolidation, or less than 30,000 shares pre-consolidation, will have fractional interests rounded up to the next whole share.
The effective date of the consolidation is expected to be no later than January 31, 2008.
Subsequently following the consolidation, the company also anticipates issuing a restricted preferred stock dividend to shareholders. The restricted preferred stock dividend is expected to be convertible into common stock and be available for public resale after the required holding period under the newly changed Rule 144 SEC regulations, effective February 2008. In most cases, the rule change reduces the holding period for restricted securities under Rule 144. The company believes this action will enhance shareholder value and plans to release further information after the completion of the share consolidation.
Additionally, the company intends to file an amendment with the Florida Secretary of State to reduce the total authorized common shares of TidalWave Holdings to 250,000,000 from the current 5,000,000,000 shares. The company will release an announcement when this action is completed.
Safe Harbor for Forward-Looking Statements
Except for historical information contained herein, the statements in this news release are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties, which may cause the company's actual results in the future periods to differ materially from forecasted results.
