Alternative Energy Technology Center, Inc. Effects Name Change, Symbol Change and Reverse Stock Split
THE WOODLANDS, TX--(Marketwire - August 1, 2008) - The Alternative Energy Technology Center, Inc. (PINKSHEETS: AETE) announced that effective today at the close of business, the Company will change its name to "Alternative Energy Technology, Inc." and begin trading under its new symbol (PINKSHEETS: ATNE). In addition, the Company announced a 1:50 reverse split of its outstanding common shares and an increase in the number of authorized shares of common and preferred stock to 500,000,000 and 20,000,000 shares, respectively. The reverse split and the increase in authorized shares will become effective at the close of business today as well.
Robert T. Kelly states, "The actions taken on June 23, 2008 and our subsequent submission to FINRA on June 9, 2008 are the result of Control Shareholder and AETE New Management having exhausted all avenues to interdict the conduct of ongoing criminal activities perpetrated by former officers and/or directors (and their associates) of The Alternative Energy Technology Center, Inc. f/k/a Mortgage Xpress, Inc." In order to curtail the sale of fraudulently issued shares of AETE common stock, New Management of AETE and its Control Shareholder made a decision to reverse split the common stock on a 1:50 basis. In making this decision the Company and New Management relied on advice from corporate council and AETE's Consultant.
"AETE has been in close contact with the Securities Exchange Commission, FINRA and various state regulatory and enforcement agencies, cooperating and providing related information ever since Control Shareholder and New Management discovered the criminal activities of Jonathan Gilchrist, William Carmichael and their cohorts," stated Mr. Kelly. He went on to say, "The company and New Management intend to vigorously and systematically pursue all those that have been engaged, directly or indirectly, in this illegal activity, which has caused substantial losses to the company, its investors and stockholders and significant damage to the reputation of AETE and its business enterprise."
The New Management of AETE would like the complete cooperation of all shareholders of AETE that purchased shares between December 2007 and July 31, 2008, as related to shares purchased from a Broker or Brokerage firm touting AETE's stock and AETE's stock touted by individuals, email spam and investor relations websites.
Associated delays in the FINRA approval of the AETE reorganization were directly related to demands by Depository Trust Company on two separate occasions to compel AETE, its Consultant and newly appointed transfer agent, Securities Transfer Corporation, to generate a letter signed by its Consultant and transfer agent stating that the fraudulent shares held in various accounts at Charles Schwab & Co., Inc. (Schwab), Legent Clearing, LLC (a Schwab company), Aurora Financial Services, LLC and its clearing firm Penson Financial Services were validly issued. This, not withstanding the clearly documented facts as presented to all parties showing the shares to have been fraudulently issued by Jonathan Gilchrist and William Carmichael under a Reg. D, 504 Offering on or about December 27, 2007. As a result of the delay by FINRA as well as demands by DTC, AETE has lost approximately eight weeks of valuable time executing its reorganization strategy as opposed to developing its business model.
Mr. Kelly stated, "It was discovered during an investigation undertaken by Control Shareholder, New Management and myself that beginning the first week of January and continuing into July 2008, AETE had been targeted for use as a conduit in ongoing criminal activities related to microcap stock fraud by former officers and/or directors of AETE and their associates. From on or about February 22, 2008 the Control Shareholder, New Management and I have been in regular contact with The Securities Exchange Commission Enforcement Division providing complete documentation on our internal investigation as it developed. The development of significant information on the disposition of the Reg. D, 504 stock offering came about through the analysis of a stock and money-laundering scheme initiated by Jonathan Gilchrist, William Carmichael, David Mordekhay and Shir Doron of Petach Tikva, Israel."
Mr. Kelly went on to say, "On information and belief, Jonathan Gilchrist transferred to Shir Doron shares of the Reg. D, 504 offering. An offer was then made to the New Management of AETE, by way of David Mordekhay, acting for an 'investment group out of Amsterdam/Israel' to provide funds through participation in a Private Placement Memorandum in the amount of $250,000 over a period of 5 months with the first $50,000 provided immediately and the remaining $200,000 in four $50K tranches. The plan was for the money for the PPM to be raised through the sale of the stock placed with Shir Doron during the time when Jonathan Gilchrist was manipulating the stock volume and value through the use of email spam and "investor relations" websites using false and misleading information and a website (www.altenergytechcenter.com) controlled by Jonathan Gilchrist (as Registrant) and designed by agents of Jonathan Gilchrist. The entire plan was to fund the PPM with funds from the sale of fraudulently issued Reg. D, 504 stock, in essence, funding the company with it's own money while gaining a larger number of shares of stock to be converted at a future date. Although this plan was interdicted in part, the eight-week delay referred to above with FINRA and DTC allowed Shir Doron to liquidate approximately 223,000 shares of fraudulent AETE common stock through the auspices of Aurora Financial Services, LLC."
As a means of eliminating the negative impact to investors and bona fide stockholders from the trading of illegal Reg. D, 504 shares and the 1:50 reverse split on bona fide shareholders of record in AETE stock, the Control Shareholder has decided to gift shares to those bona fide shareholders of record in a manner and under conditions that restore their positions in AETE stock. Bona fide shareholders of record would otherwise suffer substantial dilution subsequent to the 1:50 reverse split and shareholders who purchased the illegal Reg. D, 504 shares in the market would have possibly lost their entire investment due to the activities described above. All bona fide shareholders of record must be shareholders prior to the record date, that being Friday, August 1, 2008, and must provide AETE and Control Shareholder with documentation that substantiates the ownership of recorded shareholdings. The Control Shareholder is under no obligation, whatsoever, to honor any bona fide shareholder's request to receive the gift of shares, under any circumstance. Shortly after the Record date a letter of transmittal will be mailed to all shareholders of AETE, which will set forth the procedure involved with receiving each bona fide shareholder's new shares, gifted shares and/or warrants. All bona fide shareholders (if qualified) owning less than 500 shares will receive, in addition to the new shares and gifted shares, 10 warrants to purchase, in the aggregate, 2,000 new shares. Each warrant will be exercisable into 200 shares of the new common stock of Alternative Energy Technology, Inc. at an exercise price of $5.00 per share. Although no guarantees can be made, it is the intent of the AETE to file a registration statement with the Securities and Exchange Commission covering the common stock underlying the warrants. Such registration statement will serve to bring AETE into compliance with the Commission's required filings, in order to effectuate subsequent trading of the AETE's common stock on the Bulletin Board or higher exchange. All fractional shares held by Stockholders who own ten shares or more of the new common stock will be rounded up to the nearest full share.
The Alternative Fuels business model of AETE is structured around the development, construction and deployment of complete Fleet Mobile Vertically Integrated Biorefining Units to meet the transportation fuel needs of the country on a regional basis, placing the process equipment in close proximity to cellulosic biomass resources. The integrated proprietary technologies in these units allow AETE, through its anticipated subsidiaries, to emulate the process and product streams on a basis similar to that of traditional petroleum refining and/or chemical units. The New Management and staff of AETE are renewing its commitment to the enterprise model based on the following.
First, is the ratification of the Meridian Biorefining Technology License for cellulosic biomass processing which includes the simultaneous reduction of biomass to micro and nano particle scale range with the simultaneous separation of lignin through a Catalyzed Esterification process and further processing of the lignin into high value products including gasoline and gasoline additives. Second, its commitment to sustainable vertically integrated biorefining technology delivering multiple product streams on an expanded basis.
All of the actions described in this press release were taken by AETE's New Management and the Control Shareholder in order to bring greater value to the company and all of its bona fide stockholders. New Management, Consultant and the Control Shareholder wishes to thank all bona fide shareholders for their support in the past and their continued support now and into the future.
About Alternative Energy Technology Center, Inc.
The Alternative Energy Technology Center, Inc. (PINKSHEETS: AETE), based in The Woodlands, Texas, is a technology company focused on biofuels and alternative energy technologies. It is developing the first true biorefinery in the U.S. It will focus on technologies using renewable energy inputs from non-food energy sources and on technologies that can be scaled up to efficiently address the post-petroleum energy needs of the United States and abroad. AETE's integrated technologies provide the ability to convert cheap, abundant cellulosic plant material into a variety of fuel products that will allow AETE, initially, to efficiently address a part of America's energy needs. America's energy future must be built on renewable fuels that can be produced at a lower cost and AETE's vertically integrated biorefining technology delivers the answer to this pressing need.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: This news release contains forward-looking information within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements that include the words "believes," "expects," "anticipate" or similar expressions. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the company to differ materially from those expressed or implied by such forward-looking statements. In addition, description of anyone's past success, either financial or strategic, is no guarantee of future success. This news release speaks as of the date first set forth above and the company assumes no responsibility to update the information included herein for events occurring after the date hereof.
