TNRG Clarifies Dividend Plan
NEW YORK, May 18 /PRNewswire/ -- Tianrong Building Material Holdings, Ltd. (OTC Bulletin Board: TNRG) announced today a clarification with regard to its stock dividend of one share of Tianrong Internet Products and Services, Inc. (OTC Bulletin Board: TIPS) for every four shares of TNRG common stock owned. In order to be a shareholder of record as at May 20, 1999, purchases of TNRG common stock would have had to been made no later that May 17, 1999. This is due to the fact that ownership of stock purchased in the public marketplace is based on settlement date (trade date plus 3). Therefore any shareholder of record as at May 20, 1999 is guaranteed to receive the TIPS dividend.
Below are the NASD's policies regarding dividends where no Ex-Dividend
date has been set:
In trades that take place prior to the Ex-Dividend Date:
The purchaser will receive the Dividend.
The seller will not receive the Dividend.
In trades that take place on the Ex-Dividend Date:
The purchaser will not receive the dividend, but will benefit from the
lower price.
The seller will receive the lower price, but benefits in that he also
receives the Dividend.
In trades that take place after the Ex-Dividend Date:
The purchaser will not receive the Dividend.
The seller will receive the Dividend.
Therefore, as an example, any record holder of TNRG as at May 20, 1999 is guaranteed the TIPS Dividend; however, if the TNRG shares are sold prior to the Ex-Dividend date, the TIPS Dividend shares pass to the new purchaser with the TNRG common stock purchased. In other words, for a TNRG shareholder to receive his TIPS Dividend, he must be the owner of the TNRG common stock on the TNRG Ex-Dividend date. The Ex-Dividend date will not be set until the TIPS Registration Statement for the Dividend is declared effective by the Securities and Exchange Commission.
James Tilton, president of TNRG, stated, "We apologize for any confusion that may have occurred, however TNRG at no time stated or implied that TNRG shareholders who sold their TNRG shares after the May 20, 1999 record date would still be entitled to the TIPS dividend shares. The only fact that we did state was that all shareholders of TNRG common stock as at May 20, 1999 would be guaranteed the TIPS dividend shares. Further, the only way that an individual can receive the TIPS Dividend shares by purchasing TNRG common stock in the public marketplace after May 17, 1999 is if another individual sells their TNRG shares. For that reason we still feel that it was in the best interest of TNRG shareholders who wished to acquire the TIPS dividend shares to have purchased TNRG common stock in the public marketplace on or before May 17, 1999 in order to assure that they would be shareholders of record as at May 20, 1999."
Tianrong is a business development company that has set as its goal the acquisition of businesses in numerous industries and plans to apply Tianrong's management expertise to quickly grow value in the acquired businesses. Tianrong has announced future stock dividends in three subsidiaries and on a long-term basis may elect to issue stock dividends in other subsidiaries.
For further information contact investor relations at 800-641-5844 or visit www.tnrg.com
This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, which are intended to be covered by the safe harbors created thereby. Investors are cautioned that all forward-looking statements involve risks and uncertainties, including, without limitation, the ability of Tianrong Building Material Holdings to accomplish its stated plan of business. Tianrong Building Material Holdings believes that the assumptions underlying the forward-looking statements contained herein are reasonable, any of the assumptions could be inaccurate, and, therefore, there can be no assurance that the forward-looking statements included in this press release will prove to be accurate. In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by Tianrong Building Material Holdings or any other person that the objectives and plans of Tianrong Building Material Holdings will be achieved.
SOURCE Tianrong Building Material Holdings, Ltd.
CO: Tianrong Building Material Holdings, Ltd.; Tianrong Internet Products and Services, Inc.
ST: New York
T A P has received 700K shares of TNRG and 1 mil shares of TIPS from the company for services provided for a period of 1 year. For a complete write-up on TNRG/TIPS and other Turn Around Picks and free membership go to T A P profile for url.
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