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LFWK LoftWerks, Inc. Contemplates Regular Dividends
Market Wire - March 13, 2006 1:03 PM (EDT)
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NASHVILLE, TN, Mar 13, 2006 (MARKET WIRE via COMTEX) -- LoftWerks (OTC: LFWK) CEO Dennis Ammerman and a Consultech company representative are currently reviewing a plan to issue regular dividends to stockholders.
The plan calls for a regular quarterly dividend of $0.0025. The 300 million shares represented by Consultech and LFWK CEO Dennis Ammerman will return the dividend to the company's Operations Accounts. Two Insiders that represent 86 million shares have agreed to return the dividend to the company as well.
CEO Dennis Ammerman announced today, "The dividend is being designed to minimize effects to company profits yet incur maximum damage to the short position in our stock. Consultech and Company Insiders understand that the money spent on the dividend is necessary to achieve a reasonable fair market share evaluation for all stockholders." Two insiders, representing more than 86M shares have already agreed to return the dividend to the company. The total share count enumerated for the dividend return to LFWK operations, and subsequently Consultech, is 386M shares of the 500M Authorized.
The remaining 114 million shares will receive a $0.0025 per share dividend. LFWK estimates an equal number of short shares that will also receive the dividend. Ammerman stated, "So far, it looks like a matching dividend program from the short sellers. Every dollar the company issues, in dividend form will be matched by the short sellers. If the short sellers refuse to pay the dividend, their identity will be revealed in the 'payment in-lieu paperwork.'"
LFWK expects that the efficiencies introduced by Sulja Bros. Building Supplies' new role as exclusive supplier will pay for the dividend. Ammerman commented: "The savings from removing a middle-man supplier by using Sulja Brothers as the exclusive materials source directly and positively affects the LoftWerks bottom line. After the merger, this margin will still be realized by the company. Redirecting new profit to shareholder dividends is, in essence, another wash. The dividend plan serves but to increase shareholder value."
This contains forward-looking information within the meaning of The Private Securities Litigation Act of 1995. Forward-looking statements may be identified through the use of words such as "expects," "will," "anticipates," " estimates," "believes," or statements indicating certain acts (such as "may," " could," "should" or "might occur"). Such forward-looking statements involve certain risks and uncertainties. The actual results may differ materially from such forward-looking statements, The Company does not undertake to publicly update or revise its forward-looking statements even if experience or future changes make it clear that any projected results (expressed or implied) will not be realized.
SOURCE: LoftWerks, Inc.
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