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Xtreme Motorsports Provides Important Shareholder Update
Friday March 9, 7:45 am ET
BAKERSFIELD, CA--(MARKET WIRE)--Mar 9, 2007 -- The President and CEO of Xtreme Motorsports of California, Inc. (Other OTC:XTMS.PK - News) ("Xtreme" or the "Company"), Alan McCaa, today provided a statement regarding the Company's current share structure, the recent drop in price and the substantial increase in short selling of the Company's common stock:
"We have all often read of or experienced the growing problem of naked short selling seen in many publicly traded stocks. Until this year, this has never been a concern for Xtreme, but given the recent volatility and subsequent decline of our stock price, we are now painfully aware of the issue. Other than growing our business, I have, over the last few days, taken several steps that I hope will convey to shareholders that the company believes the shorting to be a mission critical issue.
"Regulation SHO and NASD Rule 3360 require all member firms to report their short positions on a monthly basis. According to the most recent report, we have experienced an astounding 4,208% increase in our short position from January to February. We believe it may be more severe.
"Effective today, the Company has:
-- Ordered a Non-Objecting Beneficial Owner List (NOBO) from ADP Investor
Communications;
-- Ordered a current Depository Trust Corporation (DTC) Shareholder
Position Report (a "DTC Sheet") to match against the NOBO List;
-- Hired a forensic accountant to fully investigate any discrepancies in
these reports across the brokerages and market makers suspected of shorting
Xtreme's stock.
"Our understanding is that the findings of forensic accounting firms are admissible in legal proceedings and we intend to pursue all legal action to address this shorting abuse, no matter how far it may go. Illegal short sellers need to be brought to account.
"Shareholders have also asked for detailed, confirmed common stock structure directly from Xtreme. The structure is as follows:
-- Authorized: 900,000,000
-- Issued and Outstanding: 839,208,856
- Restricted: 269,685,069
- Free-trading, Certificated: 453,763,333
- Free-trading, Electronic: 115,760,454
"In addition, the board of directors of the company has held a special meeting and resolved that Xtreme Motorsports will not consider or otherwise effect a reverse split of the common stock of the company for the next six months at the very least. We believe this would not be beneficial for shareholders at this time and have decided to maintain the status quo.
"We hope this information addresses certain outstanding questions for our shareholders and appreciate their continued support."
Alan McCaa
President & CEO
Xtreme Motorsports of California, Inc. |
