Basic Technologies, Inc. Announces Record Date for Spinoff of Subsidiaries.Business Editors LEWISVILLE, Texas--(BUSINESS WIRE)--Jan. 31, 2002 Basic Technologies, Inc. (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :BTEC BTEC Business and Technology Education Council (UK) BTEC Biomanufacturing Training and Education Center (Raleigh, NC) BTEC Business Transformation Executive Committee ) announced today that it has formed a new subsidiary, Founders Industries, Inc., for the purpose of spinning off to its shareholders, pro rata [Latin, Proportionately.] A phrase that describes a division made according to a certain rate, percentage, or share. In a Bankruptcy case, when the debtor is insolvent, creditors generally agree to accept a pro rata share of what is owed to them. , all of its interests in the following subsidiaries and their associated operations: Yankee Development Corporation, a Texas corporation; Simpco, Inc., a Texas corporation; P & A Remediation, LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control , a Texas limited liability company; P & A Remediation, LLC, an Oklahoma limited liability company; Oilfield Junk.com, LLC, a Texas limited liability company; and Cyber Cities Technologies, Inc., a Hawaii corporation (hereafter In the future. The term hereafter is always used to indicate a future time—to the exclusion of both the past and present—in legal documents, statutes, and other similar papers. the "Basic Subsidiaries") Basic Technologies holds 100% of the outstanding shares of Founders Industries, Inc., which itself owns 100% of the outstanding shares of the Basic Subsidiaries. Under the terms of the spinoff Spinoff A new, independent company created through selling or distributing new shares for an existing part of another company. Notes: Spinoffs may be done through a rights offering. , Founders Industries will acquire all of the outstanding shares of the Basic Subsidiaries. Founders Industries, Inc. would then be spun off to Basic Technologies, Inc. shareholders, pro rata, in the nature of a stock dividend distribution, pursuant to which Basic shareholders shall receive one share of Founders Industries for each share of Basic Technologies owned on the record date. Basic Technologies has established the close of business on February 8, 2002, as the record date for the spinoff. Only shareholders of record of Basic Technologies on the record date will be entitled en·ti·tle tr.v. en·ti·tled, en·ti·tling, en·ti·tles 1. To give a name or title to. 2. To furnish with a right or claim to something: to participate in the spinoff distributions. Basic Technologies will cause Founders Industries, Inc. to prepare and file a Registration Statement with the Securities and Exchange Commission registering the spinoff distribution of the shares of Founders Industries to the shareholders of Basic Technologies, pro rata. The spinoff will not occur until that Registration Statement has been declared effective by the Securities and Exchange Commission, which Basic Technologies estimates should occur in the second quarter of the year. Nevertheless, only shareholders of record of Basic Technologies on the record date of February 8, 2002, will be entitled to participate in the distribution. Following the record date, Basic Technologies shares will trade "ex dividend." |
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