¶ GOOD CYAA News: CyberAmerica Corp. Announces Stock Buy Back From Control Person in Exchange for Debt Forgiveness...
SALT LAKE CITY--(BUSINESS WIRE)--July 11, 2000--CyberAmerica Corp.
(OTC BB: CYAA) bought back 441,730 of its shares of common stock from
entities that Allen Z. Wolfson is either related to or has an
ownership interest in ("Wolfson Entities").
In exchange, CyberAmerica forgave debt owed to it by the Wolfson
Entities. CyberAmerica purchased the shares based upon the closing
price of $1.50 per share on June 26, 2000. The total purchase price
was $662,595. All notes payable between the Wolfson Entities and
CyberAmerica were eliminated as a result of the stock buy back.
CyberAmerica bought back the stock for the primary purpose of
decreasing Wolfson's direct or indirect shareholdings in
CyberAmerica's common stock below the 10 percent level.
The board of directors has determined that it would be in the best
interest of CyberAmerica to eliminate Wolfson as a control person of
the company because of certain charges brought against him originating
out of the Southern District of New York.
The term "control" is defined in Rule 12b-2 of the Securities
Exchange Act of 1934 as:
the possession, direct or indirect, of the power to direct or
cause the direction of the management and policies of a person,
whether through the ownership of voting securities, by contract or
otherwise.
Accordingly, a significant factor in determining "control" is the
ownership of a significant amount of voting securities. The board of
directors believe that the buy back of the 441,730 shares will
significantly reduce Wolfson's influence on management and is the
first step toward eliminating Wolfson as a control person.
The buy back of the 441,730 shares of stock at $1.50 was
significantly below the reported book value per share of $2.73, as
disclosed in the company's Form 10-QSB for the quarter ended March 31,
2000. The transaction will be recognized for the quarter ended June
30, 2000 and should have the effect of increasing CyberAmerica's book
value per share significantly for that period.
CYAA is a diversified holding company that specializes in
developing and investing in undervalued real estate and provides
financial consulting services to public and private companies. These
operations are expected to continue in a normal fashion for the
foreseeable future.
For more information on CyberAmerica's real estate holdings please
visit For more information on the CyberAmerica's consulting service
please visit CyberAmerica strongly suggests that the above information
be read in conjunction with its Form 10-KSB for Dec. 31, 1999 and Form
10-QSB for the quarter ended March 31, 2000.
The above documents can be viewed at A number of statements
contained in this press release are forward-looking statements which
are made pursuant to the Safe Harbor provisions of the Private
Securities Litigation Reform Act of 1995.
These forward-looking statements involve a number of risks and
uncertainties, including the timely development, and market acceptance
of products and technologies, competitive market conditions,
successful integration of acquisitions and the ability to secure
additional sources of financing.
The actual results that CYAA may achieve may differ materially
from any forward-looking statements due to such risks and
uncertainties.
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CONTACT: CyberAmerica Corp., Salt Lake City
Richard Surber, 801/575-8073
Fax: 801/575-8092 |
