Cal-Bay International Founder Members and Directors Announce Cancellation of 1.5M Shares of Preferred "A" Control Shares.CARLSBAD, Calif. -- Cal-Bay International's (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :CBAY) Board of Directors today announced the company's principals and founders have agreed to cancel 1.5M shares of Preferred "A" founder shares. The shares are purely control stock and not intended to be converted and traded. The shares have voting and conversion rights of 50-1 over the company's common stock and are designed to prevent attempts of a hostile takeover Hostile Takeover A takeover attempt that is strongly resisted by the target firm. Notes: Hostile takeovers are usually bad news, as the employee moral of the target firm can quickly turn to animosity against the acquiring firm. of the company's assets. Cal-Bay's management commented that in light of the obvious short position of the common tradable shares of the company, the founder members felt it appropriate to reduce the holdings of Preferred "A" shares, when the common stock shareholders were being victimized by the dramatic devaluation devaluation, decreasing the value of one nation's currency relative to gold or the currencies of other nations. It is usually undertaken as a means of correcting a deficit in the balance of payments. of the common tradable shares, as a result of significant short selling Short Selling The selling of a security that the seller does not own, or any sale that is completed by the delivery of a security borrowed by the seller. Short sellers assume that they will be able to buy the stock at a lower amount than the price at which they sold short. on a daily basis. The cancellation will be effective immediately and represents over 7% of the outstanding Preferred "A" control shares of the company. FORWARD-LOOKING 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. STATEMENT: To the extent that this release discusses any expectations concerning future plans, financial results or performance, such statements are forward looking within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are subject to substantial risks and uncertainties. Actual results could differ materially from those anticipated in the 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. . Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof and reflect only management's belief and expectations based upon presently available information. These statements, and other forward-looking statements, are not guarantees of future performance and involve risks and uncertainties. The Company assumes no obligation to update any of the forward-looking statements in this release. |
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