BEVERLY HILLS, CA / ACCESSWIRE / October 25, 2016 / Beverly Hills Group Inc. (OTCPK: BHGI, BHGID) Announces Restructuring of Outstanding Shares.
On October 12, 2016, our Board of Directors proposed a 1 for 100 reverse stock split of our outstanding common stock and the majority of our shareholders approved the same.
The reverse stock split has the effect of decreasing the number of outstanding shares. This reduction will provide flexibility in future corporate development and will increase the per share market price of our common stock, which may provide a more favorable trading market for our shares.
The reverse split was approved by FINRA on October 14, 2016 and took effect October 17, 2016. Our shares of common stock have equal rights and privileges with respect to voting, liquidation and dividend rights. Each share has one non-cumulative vote, equal participation in dividends declared by the board of directors, and any distribution of assets upon liquidation. As per the terms of the reverse stock split, any fractional share amount resulting from the split will be automatically rounded up to the next higher whole share amount.
EFFECTS OF THE REVERSE STOCK SPLIT
Our stock symbol has now changed to 'BHGID', and will remain so for a brief period of time (approximately 20 days), after which the stock symbol will revert back to 'BHGI'.
Existing shares of 'BHGI' currently at most brokerage firms cannot be traded until the stock symbol reverts back to 'BHGI'. However, 'BHGID' shares can be bought and sold as usual, and those shares will become 'BHGI' shares when the stock symbol reverts back to 'BHGI'.
The reverse split will decrease the number of outstanding common shares but will not affect the proportionate interest in our Company. Par value per share remains unchanged.
BHGI will adopt a new stock certificate in connection with the implementation of the reverse stock split. BHGI's transfer agent, Interwest Transfer Company, Inc., will manage the exchange of stock certificates. After the reverse stock split, each stock certificate representing pre-split common stock will represent 1/100th the shares of post-split common stock. Certificates representing post-split common stock will be issued as old stock certificates are tendered for exchange or transfer. Certificates representing restricted shares will have the same restricted legend as on the prior certificates.
We suggest that shareholders call Interwest Transfer Agency before sending in your certificates to determine the logistics of getting new, post-split certificates issued.
Interwest Transfer Company, Inc.
1981 Murray Holladay Road, Suite 100
Salt Lake City, UT 84117
T: +1 801 272 9294
F: +1 801 277 3147
Sincerely yours,
Jacob Thomas
Chairman of the Board
Beverly Hills Group, Inc.
ABOUT BEVERLY HILLS GROUP
Beverly Hills Group Inc. is a multi-faceted company with current diverse investments in Mexico, including retail convenience stores, wholesale distribution, construction, real estate development, banking and financial services. Its objective is to grow through strategic acquisitions, focusing first on the increasing consumer awareness and demand in the Mexican and Latin American markets. Once these strategic acquisitions are procured and integrated into the long term objectives of the company, Beverly Hills Group will provide investment capital, preeminent modern business practices and best-in-class management to cultivate and mature these companies to their greatest potential.
FORWARD-LOOKING STATEMENTS
This shareholder update may contain a number of forward-looking statements. Words and variations of words such as: "expect", "goals", "could", "plans", "believe", "continue", "may", "will" and similar expressions are intended to identify our forward-looking statements, including but not limited to: our expectation for growth, benefits from brand-building, cost savings and margins.
These forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond our control, which could cause our actual results to differ materially from those indicated in our forward-looking statements. Such factors include, but are not limited to: continued volatility of, and sharp increase in: costs/pricing actions, increased competition, risks from operating internationally, consumer weakness, weakness in economic conditions and tax law changes.
SOURCE: Beverly Hills Group Inc.