Heathrow Nat. Food and Bev Inc. (fka HRNF)

[danielll]

Dear Mike Pagnano,

I understand how the stock conversion works, but I don’t understand whether it can be subjected to reverse splits, dividends, and if it is tradable or not. Can you explain the limitations of this stock?


Thank you for your e-mail. This stock will be immune to any reverse splits. As you may have noticed from our news releases, WGL Entertainment Holdings is enjoying a wealth of new business. After January 15, 2009, the stockholders in possession of the preferred stock will enjoy dividends while there is no guarantee for the common shares. The stock will not be tradable and can only be converted back to normal shares if this is desired. If, for example, the company were to conduct a 20:1 reverse split, this would not affect the holders of the preferred stock. The conversion is still the same, period. Thank you for your interest.

Sincerely,



Mike Pagnano