CSCA - Cassco Capital Corporation to Implement Up to a One Hundred to
One--100:1--Reverse Split
DENVER, Jun 1, 2000 (BUSINESS WIRE) -- Cassco Capital Corporation (OTC:BB-CSCA)
today announced that its board of directors have determined to implement up to a
one hundred to one (100:1) capital share reverse split.
The Board has concluded that to maximize the value of the Company for its
shareholders, the Company should attempt to locate and acquire, or be acquired
by, another business. The Board believes that a significant number of private
businesses would be interested in a business combination with the Company,
primarily in order to become a public-reporting entity with a market for its
securities. The Company has no assets and no present intended business;
accordingly, it is likely that the owners of any business combined with the
Company will expect to receive a large majority of the then outstanding stock.
The very large number of shares of the Company's common stock outstanding are
substantially too many for a small public corporation. Any trading in Company
stock would likely be at a low price that could discourage market makers or
investors. Unless the number of outstanding shares is reduced, the Board
believes that it is unlikely that an acquisition or combination beneficial to
Company and its shareholders can be accomplished.
The Board also believes that the Company's common stock may be of interest to a
larger number of brokers and private investors if the reverse split is effected.
The Board expects that the market price for the common stock would be higher
because there would be fewer available shares as a result of the reverse split,
but no assurance can be made. The Board is aware that it is possible that the
reverse stock split instead may have an adverse effect on market demand for the
Company's common stock because of the smaller number of shares outstanding.
This news release includes forward-looking statements related to Cassco Capital
Corporation that involve risks and uncertainties, including, but not limited to,
quarterly fluctuations in results, the management of growth, market acceptance
of certain products and other risks. These forward-looking statements are made
in reliance on the "safe-harbor" provisions of the Private Securities Litigation
Reform Act of 1995. For further information about these factors that could
affect Cassco's future results, see the company's filings with the Securities
and Exchange Commission (the "Commission"). Prospective investors are cautioned
that forward-looking statements are not guarantees of future performance. Actual
results may differ materially from management expectations.
CONTACT: Marketex
Gary Swancey, (770) 389-5645
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