NEWS
March 10, 2000 14:37
Global TeleMedia International Major Shareholders Agree to Retire Shares Equivalent to Equity Infusion
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NEWPORT BEACH, Calif.--(BUSINESS WIRE)--March 10, 2000--
The Company has Accepted an Offer of Immediate Equity Financing
and the Major Shareholders Have Agreed to Give Up an Amount of
Their Personal Shares in Order to Accomplish the Equity
Investment Prior to the Shareholders Meeting
Global TeleMedia International, Inc. (OTCBB:GTMI) announced today that the company has entered into an agreement for an immediate equity participation by a strategic partner.
As part of the agreement the Company has agreed to apply for a listing on the AMEX as soon as possible. The Board of Directors believes in the stability of the AMEX and potential of the Company's stock. With the appointment of a "specialist" and the rules against "shorting", the AMEX will serve to give the major institutions and sophisticated investors access to GTMI stock.
The Company believes that its roll out programs and the continuing development of its e-commerce related products will continue to give the shares sufficient value to qualify for the major exchange listing. The strategic partners believe that the new management has developed "Brand Identity" amongst GTMI's almost 8,000 world-wide shareholders, and such brand identity includes the GTMI symbol. The Company has not ruled out a transfer to the NASDAQ at some point in the future and has received advice that the symbol "GTMI" could be reserved for one year should such a transfer be effected.
The strategic partner wishes to acquire an immediate equity interest in the Company.
However, as the Company has issued all of its common stock in a move, which conveyed management's solidarity and commitment to the Company, its major shareholder/directors, Jonathon Bentley-Stevens and Regina S. Peralta, have agreed to allow the strategic partner to acquire the agreed amount of equity by acquiring some of their personal shares. The price has been agreed at 94% of the 5 day moving average prior to the purchase.
Pursuant to regulations, the subject shares will be listed as "registered for sale" prior to acquisition by the equity partner. In order to comply with US-GAAP, so that the funds will be treated as an equity infusion into the company, the major shareholders, in turn agreed to accept one for one restricted shares to be issued by the company after the shareholders meeting. However, Jonathon Bentley-Stevens and Regina S. Peralta have committed to immediately retire the newly issued restricted shares when received so as not to dilute the existing shareholders.
The shareholders meeting has been postponed so the Company can include its 1999 annual report which will include audited financials together with the Proxy Statement. The shareholders meeting will occur approximately about April 25, 2000.
Global TeleMedia International, Inc., located in Newport Beach, California, through its BentleyTel.com subsidiary, is a leading developer of software for media, high speed, Internet and wireless communication systems, including international & long distance Voice over IP, LAN VPN (Virtual Private Network), ISP, Virtual ISP, and PC-PC, PC-Phone transmission of data and voice. It also owns certain real estate based assets in the Philippines.
This press release contains forward-looking statements. All such statements involve risks and uncertainties, including, without limitation, the risks detailed in Global TeleMedia's filings and reports with the Securities and Exchange Commission. Such statements are only predictions and actual events or results may differ materially.
This release and prior releases are available on the KCSA Public Relations Worldwide Web site at www.kcsa.com.
CONTACT: KCSA
Robert Giordano/Daniel Stepanek
212/896-1289/1202
rgiordano@kcsa.com / dstepanek@kcsa.com
www.kcsa.com
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