>>>>NEWS! Nasdaq:NATK
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North American Announces Shareholders Approve Financing and Reverse Split; Sale of TechXTract Technology; and First Quarter Results
HOUSTON, May 12 /PRNewswire/ -- North American Technologies Group, Inc., (Nasdaq: NATK - news) held its annual meeting on May 12, 1998 in Houston, and the shareholders approved several proposals which will have a significant effect on the company and its shareholders.
-- NATK stockholders gave the Company approval to issue and sell up to
$2 million of cumulative convertible preferred stock in a private
placement transaction. The issue will be made under the terms of its
Master Certificate of Designation of Cumulative Preferred Stock,
Series G -- Subseries II. The Company anticipates the preferred stock
will be sold to a group consisting of existing preferred stockholders,
including NationsBanc Capital Corporation, and several new private
investors. The funds will primarily be used to build and operate the
Company's first commercial scale plant for manufacturing the TieTek
Composite Railroad Crosstie. The completion of the private placement is
subject to the execution of definitive documentation and customary closing
conditions.
-- NATK stockholders also approved a reverse split of the outstanding
shares of common stock. The reverse split will be effective in accordance
with a formula based on the trading price of the Company's common stock
prior to the filing of the amendment to the Company's certificate of
incorporation effecting the reverse split. Under this formula the reverse
split will be effected pursuant to a ratio calculated by dividing $ 1.50
by the average of the low bid prices of the Company's common stock as
reported on the Nasdaq SmallCap Market(SM) (the ''SmallCap Market'') during
the ten (10) trading days prior to filing the amendment. The Company
anticipates filing this amendment on May 12, 1998 and, given recent
trading prices, expects that the ratio used in the reverse split
calculation will be 9 or 10. NATK requested approval for the reverse
split to meet Nasdaq's new requirements regarding a minimum bid price of
$1 per share. The Company will be mailing information relating to the
reverse stock split to its stockholders.
-- NATK stockholders also elected Donovan Boyd and Henry Sullivan as
directors for terms of three years, and ratified the appointment of BDO
Seidman, LLP as independent auditors for the Company for the fiscal year
ending December 31, 1998.
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