Alert from WallStreetReporter
VCTY
Videolocity International, Inc. (VCTY; www.videointernationalcorp.com) has seen its share price jump by 30.8% on January 31 as its volume increased to more than 62 million shares at the beginning of the Monday session. The company also announced that it has closed the sale of its Avatar Singh Construction subsidiary (ASCC) and that there could be a possible distribution for VCTY shareholders. With this news, we expect the stock to continue its rally today and most likely in the upcoming sessions, which should attract new investors.
The sale of ASCC is being conducted on an all-stock basis and could yield VCTY several million dollars in profits. VCTY had only intended to hold ASCC, an Indian construction company, for a short time after purchasing it in October 2010. VCTY management explored the idea of a stock distribution to its shareholder base, but it was advised that past distributions of non-related transactions (non-reporting to non-reporting issuer) were unsuccessful to enter the retail beneficiaries. The company is exploring other alternatives, such as direct distribution through the transfer agent, and/or other options available to the company.
This reshuffling of the company portfolio will allow VCTY to focus on its Tactician University subsidiary in China. Tactician is a progressive management education and leadership training center that tackles prevalent issues in the Chinese economy and its society, and trains 21st century Chinese leaders. It has a proven business model and VCTY is considering complementing it with additional viable ventures.
The sale of ASCC should enhance the value of VCTY and improve its shareholders' positions in the company as it grows more organically within its industry niche.
VCTY will update its Adequate Disclosure as soon as its first quarter is complete. The proceeds of the sale will also be reflected in VCTY's financials.
Keep an eye on VCTY!
