Wednesday August 5, 9:30 am Eastern Time
Company Press Release
SOURCE: Coconino S.M.A. Inc.
Coconino S.M.A. to Spin Off Two Subsidiaries
SALT LAKE CITY, Aug. 5 /PRNewswire/ -- The Board of Directors of Coconino S.M.A., Inc.
(OTC Bulletin Board: CSMA - news) after meeting in a special session, today announced its
proposed asset sale to Buffalo Capital IV, Ltd. [OTC BB:BUFF - news] has been cancelled. The
company will instead spin off its Ad-HaTTeRs, Inc. and Enviro-Tec, Inc. subsidiaries. The special
meeting of shareholders previously scheduled for August 22, 1998 has been cancelled. The regular
annual shareholders meeting date will be announced later in the year.
Coconino SMA shareholders of record as of September 30, 1998 will receive 100% of the shares in
both new companies proportionate to their ownership of Coconino SMA, Inc. shares. When the
distributions have been made, each shareholder of record will then have three (3) shares of stock,
one share each of Coconino SMA, Inc., Ad-HaTTeRs, Inc., and Enviro-Tec, Inc., for every share
of CSMA they held as of the new reorganization date.
The Board of Directors also authorized a one for five share reverse split of its common stock.
Following this recapitalization, Coconino's outstanding shares will total approximately 5,162,187.
This move is in preparation for the spin-off.
In a brief comment on today's announcements, Coconino president Hamlin K. Elrod said, ''Our
Board continually seeks the best possible means of increasing the value of Coconino's shareholder
equity. Ultimately it was decided that an internal reorganization and recapitalization rather than the
asset sale would best serve our shareholders. There will be no dilution to existing shareholders as a
result of this reorganization, and the total number of shares outstanding will be more in line with what
is expected of a Company such as ours.''
Coconino SMA will now redirect its energies solely towards acquisition of, for the most part,
producing oil and gas properties. Other energy-related opportunities may also be considered.
CSMA will retain Hamlin K. Elrod as its president and chairman. Robert Stenquist will continue to
serve as secretary and a board member. Derry Moore will remain as a director and Swede Nelson
will serve as a consultant to the board.
Both Enviro-Tec and Ad-HaTTeRs will have independent board membership. Operations of
Ad-HaTTeRs will remain with David Timpson who has led the company to its first full year of
profitability. Enviro-Tec, Inc. will be managed by Robert Pettit who was instrumental in obtaining the
long-awaited Class V disposal permit for their Blue Bench disposal well in Duchesne, Utah.
For information or comments, please contact Coconino SMA's company spokesman, Michael Millis,
at Irvine Capital & Communications. Tel. 949-733-9218, 800-733-0087, fax 949-786-8208, or
email to irvinecapcom@worldnet.att.net.
Safe Harbor Act Disclaimer: This release may contain forward looking statements that involve risks
and uncertainties including, without limitation, continued acceptance of the company's products and
services, increased levels of competition, new products and technological changes, the company's
dependence upon financing, third-party suppliers and intellectual property rights, and other risks
detailed from time to time in the company's federal filings, annual report, offering memorandum, or
prospectus.
SOURCE: Coconino S.M.A. Inc. |
