hello all, i have been in lurking mode for quite some time, but today i emailed pagnano and i received a reply i thought i should post...
Mr. Pagnano,
I am currently a stock holder of WEHI. I am writing concerning the recent press release and the reduction of shares. I am wondering if the 95% reduction will result from the company repurchasing the shares on the open market and retiring them, or if there is going to be a reverse split. I am aware that the company is stating there will be no RS, but as you may know penny stocks are full of crooks and empty promises. I am wondering if this stock repurchase (if that is what will happen) has begun, or when it will begin. I am also wondering where the money will come from for the repurchase. Thank you for your time.
Sincerely,
xxxx
Thank you for your e-mail. I have received a number of e-mails reflecting this concern and have prepared a statement addressing this:
Our staff is highly against a reverse split as I and other members of our board are also invested in WGL Entertainment holdings. It is of our opinion that the stock is severely devalued. It was advantageous for the company to attempt to buy the majority of shares (95%) and cancel them. This would then theoretically increase the value of the shares still held by our loyal stockholders by 20 times the current value and restore credibility to the company. In order for this to happen the company must purchase extremely large portions of stock to decrease the trading costs. The company is close the target, but still needs more time for the repurchases. New, preferred stock would then be distributed in place of the former devalued stock. I¢m sorry for the misinterpretation taken by so many shareholders on this matter.
The company has endured a wealth of new income as stated in the last press release. The MDSO airing in Europe and will produce revenues close to $300,000. The national cable airing for the MDSO beginning in mid November will create revenues of about $500,000 and the casting of Hot Days and Hot Nights is currently under way in Las Vegas and is scheduled to be completed the week of November 11, 2008, which will produce another $500,000. The enormous amount of business executed and scheduled this quarter alone has made this an exciting time for the WGL Entertainment holdings.
Sincerely,
Mike Pagnano
