READ THIS CAREFULLY***PayChest Announces Finality on Stock Audit
Jun 22, 2007 Pink Sheets News Service
Huntington Beach, CA — HUNTINGTON BEACH, CA--June 22, 2007 - PayChest Inc. (Other OTC: PYCT Pinksheets) PayChest today announced its results to the public regarding the recently completed stock audit. Other than two minor claims outstanding and still being negotiated, the Company audit revealed strong results:
The total number of shares outstanding were reduced by 5,825,544,340 to 16,620,990,045 from 22,446,534,385 in October 2006, a 26% (twenty six percent) reduction. The float was decreased by 1,399,572,181 to 16,379,110,203 from 17,778,682,384 in October 2006 and the number of shareholders increased by 584 to 6,580 from 5996 in October 31, 2006.
The asset position has not changed throughout this stock reduction process.
In addressing repeated queries from hundreds of shareholders, regarding PayChest's position on reverse stock splits, management states it's response as follows:
The company had two choices to resolve the problems associated with the volatility, dilution and price per share. The choices were to reverse split or reduce the number of outstanding shares.
A reverse stock split would not change the percentage ownership of the shareholders with dilutive shares. Historically, the majority of stock splits have frequently resulted in a twenty to forty percent decrease in the shareholder value. Furthermore, a reverse split would erode our shareholder loyalty and is usually received very negatively. The desire of the majority of our shareholders was not to utilize a reverse stock split and this greatly influenced our decision to opt for a stock reduction process instead.
Utilizing the stock reduction approach was the most logical, though time consuming. This reduction increases current and future asset to share values by approximately 26%. The company believes that is has prevented future dilution and volatility of the stock and established a base in which to build stronger stockholder value.
"To protect our shareholders interests and that of the company, this grueling seven month negotiation process has proven effective and established a platform to integrate valuable assets into PayChest, with the knowledge that the majority of the shares are now in the public's hands. We hope this clarifies the constant debate between the stock reduction and the reverse split" said Mr.Pillay, PayChest's CEO.
In response to investor inquiries about the length of time it took to conduct the audit, Mr. Pillay said, "The process of renegotiating multiple stock issues meant we had to investigate all issues first and establish their validity. Time has been the cost of negotiations, but the results have provided the framework to build stockholder value. After all, the whole point of incorporating business ventures into a public company is to create much higher shareholder valuations. It now makes sense to add assets and revenue generating ventures and continue with our business and marketing plan. Throughout this negotiation our assets have not changed."
Press releases moving forward will be published with business and marketing related news and all stock related matters will be posted in our FAQ section of the company's website www.paychest.com.
The Company has requested corrections to its stock and company information posted on several financial portals and urges investors to utilize information on Pinksheets http://www.pinksheets.com/quote/company_profile.jsp?symbol=PYCT which provides the most accurate and up to date company information.
About PayChest
PayChest and its strategic partner companies have developed an integrated online payment processing platform utilizing cutting edge technologies to deliver payment solutions online. These payment processing solutions include turnkey payment facilitation for credit and debit cards, electronic checks, money transfer solutions, gift cards and turnkey rewards based systems.
New management within PayChest is focused on innovative and tangible products, improving the online financial experience for online consumers and e-commerce businesses worldwide. To fulfill this obligation, the new management has marked significant timelines over the next few months to streamline operations, with a focus on integrating backend transaction processing infrastructures scalable to new payment technologies and marketing opportunities.
Safe Harbor Statement
The foregoing press release contains forward-looking statements. For this purpose any statements contained in this press release that are not statements of historical fact may be deemed to be forward-looking statements. Without limiting the foregoing, words such as "may," "will," "expect," "believe," "anticipate," "estimate," "continue," or comparable terminology are intended to identify forward-looking statements. These statements by their nature involve substantial risks and uncertainties and actual results may differ materially depending on a variety of factors.
CONTACT: PayChest, Inc. Investor Relations Email: info@paychest.com
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