NEWS out:
Pink OTC Markets News Service
Boca Raton, FL—
Spearhead Limited, Inc. (Pink OTC: SPHE) today announced that it has reached an agreement with the substantial majority of its lenders to extend the maturity date of $5,209,000 of investor notes to January 31, 2011, and to issue an aggregate of 33,929,306 shares of the Company’s common stock in lieu of $1,696,465 in accrued and unpaid interest to December 31, 2007. In addition, the lenders have agreed to forgo interest from January 1, 2008 to January 31, 2011 in consideration for the reduction of the exercise price of 9,529,858 outstanding warrants to $0.05, the current market price, and an extension of the expiration date of the said warrants to June 30, 2011.
The Company is in the process of finalizing its financial statements and expects to release its results for the year ended December 31, 2008 and the quarters ended March 31, 2009 and June 30, 2009 by October 15, 2009. The delay in releasing the financial results was caused by the need to recover financial records from the Company’s former financial advisor, which was accomplished in late July 2009, and the restructuring of the investor notes.
The Company states that it is subject to a “collusion” lawsuit brought against the Company and six of its competitors by the Competition Bureau of the Canadian federal government. In the lawsuit, the Canadian government alleges that two former consultants to the Company conspired with the other six IT consulting firms in coordinating bids for government contracts. The Company`s position is that the claim is without merit and is vigorously defending the action.
The Company cautions shareholders and investors not to rely on any third party information about its contracting business or its financial performance and to rely only on official statements from the Company. As of the date of this release, the Company is not aware of any material change relative to its contracting business or its financial performance other than stated in this release.
END OF RELEASE
