90% Buy Back of Pearl Asian Mining Industries' Common Shares Will Be Automatic With The Exchange Date Effective June 15, 2006.
After a lengthy meeting with NASDAQ, DTC and our transfer agent, it had been confirmed that there is no X-Date or record date for this buy-back exchange.
Pearl Asian Mining Industries had announced last month that the record date for this action was June 1, 2006. However, no record date is required. The exchange date is going to be automatic for all shareholders holding common shares through DTC with the exchange date to be June 15, 2006.
The Shareholders holding through DTC will not have to do anything in this exchange, as this will be a mandatory exchange and automatically done through the same process. A stop transfer will be placed on shares outstanding on June 15, 2006, regarding shareholders that fail to surrender 90% of their common shares for exchange on June 15, 2006. The stop transfer will not be released until those shares are surrendered in exchange for the CDs.
The buy back rate is that for every common share surrendered, Pearl Asian will pay $0.001, the par value of the common shares in the form of convertible debentures, when held to the maturity of 5 years. The CD is to be paid on the 5th year without interest. The debentures can be converted back to common shares at a fixed rate of $0.01 per share at any time on or before maturity, upon surrender of the CD to the company or its transfer agent.
As an example, a shareholder owning 1,000,000 common shares will keep 100,000 common shares and receive a CD with a face value of $900 due and payable in 5 years without interest. In this example, any time during the 5 years, the holder will be entitled to convert that CD to 90,000 common shares.
Chairman of the Board, E. Pearl Asian, commented: "I am very optimistic about the future of Pearl Asian Mining (PAIM). The company is taking this calculated risk, going into long-term debt for the first time beginning June 15, 2006. I am certain that when the debentures become due and payable, the company's earnings will far exceed the face value of this debt. Furthermore, I also believe that this is the most creative and positive way of reducing the current outstanding public float, thus avoiding the negative impact and effect of a reverse split. We have to balance what is best for everyone concerned, for all of our shareholders and for the company as well."
Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements in this release include statements regarding the Company's projections regarding gold production in future periods. The Factors that could cause actual result to differ materially from anticipated results includes risks relating to estimates of reserves, mineral deposits and production costs; mining and development risks. The risk of commodity price fluctuations; political and regulatory risks; risks of obtaining required operating permits and other risks and uncertainties. Penny Stocks are very highly speculative and may be unsuitable for all but very aggressive investors. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as the result of new information, future events or otherwise.
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|Date:||Jun 12, 2006|
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