Avasoft Comments on Unusual Stock Trading Activity.ROCKLIN, Calif. -- Avasoft, Inc. (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :AVAF) purveyor (World-Wide Web) Purveyor - A World-Wide Web server for Windows NT and Windows 95 (when available). http://process.com/. E-mail: <info@process.com>. of a patented, innovative soft-serve ice cream system to the estimated $6 billion combined U.S. and United Kingdom soft-serve marketplace, today commented on the recent unusual trading activity in its common stock. The Company's float of free tradable common stock has been increased recently from approximately 180,000 shares to 14 million shares and this is believed to be causing the current volatility in the market for its common stock. Avasoft notes that its business update and outlook for profitability in the third quarter of this year -- as detailed in its March 6 Special Letter to Shareholders -- remains current and solidly on track. The enactment of revisions to Rule 144, promulgated prom·ul·gate tr.v. prom·ul·gat·ed, prom·ul·gat·ing, prom·ul·gates 1. To make known (a decree, for example) by public declaration; announce officially. See Synonyms at announce. 2. under the Securities Act, became effective February 15, 2008 enabling non-affiliate Avasoft stockholders to sell their shares freely after six months, subject only to the current public information requirement, and without restriction after one year. This Rule 144 change also coincides with the Company's one-year anniversary as a public company February 13, 2008, upon which many of approximately 14 million of the Company's 22 million shares issued one year ago become available for sale in the public market; a quarter of these shares were issued directly for the Company's merger or financing over one year ago and have a low or zero cost basis. This 14 million-share float compares with a float of approximately 180,000 shares that were freely tradable prior to mid February. Avasoft believes this dramatically increased supply of freely tradable shares has created selling pressure on the market for the Company's common stock causing unusual volatility. The Company is consulting with its investor relations Investor relations The process by which the corporation communicates with its investors. firms and investment banker Investment Banker A person representing a financial institution that is in the business of raising capital for corporations and municipalities. Notes: An investment banker may not accept deposits or make commercial loans. on solutions to create greater liquidity and restore balance to the market for its common stock. About Avasoft, Inc. Headquartered in Rocklin, California Rocklin is a city in Placer County, California. It is a primarily residential community located north of Sacramento. It shares borders with Roseville, Loomis, and Lincoln. As of 2006, the city's population was estimated to be 50,920 people[1]. , and through its wholly owned Ezee Whip Europe, Ltd. subsidiary, Avasoft sells an innovative soft-serve ice cream system into an estimated $6 billion combined U.S. and U.K. soft-serve ice cream marketplace. This patented system, for which it owns marketing rights in Europe and North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. , has earned widespread success in several European markets for the last five years. Please visit Avasoft online at www.avasoft.com. For more information To receive public information, including press releases, SEC filings, profiles, investor kits, news alerts and other pertinent PERTINENT, evidence. Those facts which tend to prove the allegations of the party offering them, are called pertinent; those which have no such tendency are called impertinent, 8 Toull. n. 22. By pertinent is also meant that which belongs. Willes, 319. information, please click on the following link: http://www.b2i.us/irpass.asp?BzID=1493&to=ea&s=0. Forward Looking Statement This news release includes forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that are made pursuant to the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. While these statements are made to convey to the public the company's progress, business opportunities and growth prospects, readers are cautioned that such forward-looking statements represent management's opinion. Whereas management believes such representations to be true and accurate based on information and data available to the company at this time, actual results may differ materially from those described. The company's operations and business prospects are always subject to risk and uncertainties. Important factors that may cause actual results to differ include without limitation: the Company's limited operational experience; ability to raise financing; market acceptance of the Company's ice cream products; dependence on suppliers including Schoep's, and in turn, their suppliers, distributors and providers of raw materials; dependence on license partners; market prices of raw materials such as milk, sugar, and other ingredients; continued enforceability of patent rights; and competition. Many of these risk factors are set forth in the company's periodic findings with the U.S. Securities and Exchange Commission. |
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