Anyone with an explanation? Stock closed at 2 1/4 today. Does this mean we are getting .97 for the stock?
AmeriNet Announces Closing of Financing
Initiation of Corporation Restructuring
Englewood, Colorado, February 8, 1999 – AmeriNet Financial Systems, Inc. (OTC Bulletin Board: ANFS) today announced the sale to third party investors on January 14, 1999 of an aggregate of $14.6 million of Series B Notes which, subject to regulatory approvals for conversion of a majority of the outstanding principal, will be convertible into shares of Series B Convertible Preferred Stock at a conversion rate of $0.97 per share. Each share of Series B Preferred Stock will initially be convertible without charge into one share of AmeriNet's common stock.
AmeriNet is required by the terms of the financing to consummate a reorganization, whereby AmeriNet's common stock shareholders will receive shares of a new Delaware corporation in exchange for their AmeriNet common stock shares at an exchange ratio of one share of the new Delaware corporation for each 20,000 shares of AmeriNet. The existing AmeriNet corporation will become a wholly owned subsidiary after the reorganization. In lieu of issuing fractional shares to AmeriNet shareholders, AmeriNet will pay cash equal to the fair value of its common stock as of February 7, 1999 as determined by the Board of Directors. It is anticipated that this fair value will not exceed $.97 per share.
The reorganization is subject to shareholder and regulatory approval. The shareholder approval for the reorganization and issuance of the Series B Preferred Stock was obtained today at a special meeting of AmeriNet's shareholders. When the reorganization is effective, AmeriNet's OTC Bulletin Board trading will cease and both AmeriNet and the new Delaware corporation will be privately held companies.
Contact: Eric Cunliffe
President
AmeriNet Financial Systems, Inc.
(303) 290-6000
Web Site: HYPERLINK "http://www.AmeriNetCARES.com/" amerinetcares.com
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