Today’s Icoa Inc. (OTC: ICOA) came with press release that shouldn’t be ignored by army of OTC’s traders (grin):
ICOA, Inc. to Reduce Outstanding Shares by 4.5 Billion
Marketwire “Press Releases “
WARWICK, RI — (MARKET WIRE) — 10/07/10 — ICOA, Inc. (PINKSHEETS: ICOA ) (www.icoacorp.com) today announced the Company’s Board of Directors has agreed to reduce the issued and outstanding shares by 4.5 billion shares held by related parties.
The reduction will be executed in three phases:
Phase I: 1.5 billion shares will be cancelled as soon as practical in the month of October 2010 .
Phase II: 1.5 billion shares will be cancelled during the month of November 2010 .
Phase III: 1.5 billion shares will be cancelled in the month of December 2010 .
While these shares were restricted for three years, the Company believes this strategic action will provide a long term benefit to existing stakeholders and potentially inspire confidence to future shareholders.
The Company intends to expedite the necessary documentation and conclude the reduction of the issued and outstanding shares, earlier than originally planned.
Regarding the transaction with American Marketing Complex (AMC) announced on October 4th 2010, the Company wishes to clarify that this transaction will record equity of $10 million in ICOA’s Balance Sheet. The numbers of shares (20,000,000) are issued at a price that is $0.50 Cash Equivalent Credits per share (Media etc credits). In the Company’s opinion this is a strong indication of the direction AMC believes the Company is headed. This transaction will strengthen our balance sheet significantly and management believes it was executed in the best interest of its shareholders. These shares are restricted and cannot be traded in the market until released from restriction in accordance with SEC rules: twelve months for non-reporting or six months for reporting companies.