Attached files
| file | filename |
|---|---|
| 8-K - MEGOLA INC | v197224_8k.htm |
| EX-10.3 - MEGOLA INC | v197224_ex10-3.htm |
| EX-10.1 - MEGOLA INC | v197224_ex10-1.htm |
| EX-10.2 - MEGOLA INC | v197224_ex10-2.htm |
| EX-10.4 - MEGOLA INC | v197224_ex10-4.htm |
| EX-10.6 - MEGOLA INC | v197224_ex10-6.htm |
Megola
Announces Opening of a Brokerage Account at Glendale Securities, Inc. for Stock
Buyback Plan
POINT EDWARD, ON – September 8, 2010 -
Megola Inc. (OTCBB:MGON - News), announced today it has opened
a brokerage account with Glendale Securities, Inc. which will enable the company
to buyback its common shares in the open market. Megola and Glendale Securities,
Inc. will follow the guidelines
found in the 1934 Act's Rule 10b-18--Purchases of Certain Equity Securities by
the Issuer. Technically, Rule 10b-18 provides a safe harbor only for repurchases
of common stock.
“The
Board of Directors unanimously voted to open an account which will give the
company the ongoing option to buy its common shares in the open market," says Joel Gardner, President and CEO
of Megola Inc. “The reasoning behind the share repurchase program is twofold.
First, an immediate buyback strategy will enable the company to
potentially reduce the number of outstanding common shares thereby putting
pressure on any short sellers. Second, the company views share repurchases over time as
another way to essentially create shareholder value by purchasing any
stock below $0.20 which is the current conversion price per share for the
1,092,255 Preferred Series A Shares that are still outstanding,” continues
Gardner.
Megola
has recently reduced the outstanding shares by 7,031,800 from 33,570,455 to
26,538,655 by moving management’s restricted common share volume back into
Preferred Series B holdings. Series B Shares have no voting rights or warrant
options attached to them. Management also currently holds 641,459 Preferred
Series A Shares, or approximately 58.7% of the remaining Preferred Series A
Shares eligible for conversion to Common, which may further help to deter short
sellers from targeting Megola’s common stock.
Recent
trade activity of Megola’s stock since June 1, 2010 (after conversion dates of
Megola’s preferred series A and B shares), shows that of the approximately 7.9
million shares traded over 50%, or approximately 4 million, have been Short
Sales.
For more
information on Hartindo products and Megola Inc. please visit www.megola.com
As of
September 7, 2010, the Common Share structure for Megola is as
follows:
|
Authorized:
|
200,000,000
|
|
|
Outstanding:
|
26,538,655
|
|
|
Restricted:
|
130,287
|
|
|
Float:
|
26,408,368
|
Shareholders
and investors are strongly cautioned against placing undue reliance on
information set forth in these communications in making any investment decisions
concerning our securities.
The
matters set forth in this press release are forward-looking statements within
the meaning of the "safe harbor" provisions of the Private Securities Litigation
Reform Act of 1995. These forward-looking statements are subject to risks and
uncertainties that may cause actual results to differ materially. These risks
are detailed from time to time in the company's periodic reports filed with the
Securities and Exchange Commission including the company's Annual Report,
Quarterly Reports and other periodic filings. These forward-looking statements
speak only as of the date hereof. The company disclaims any intent or obligation
to update these forward-looking statements.
Contact
Information:
Megola
Inc.
Daniel
Gardner
1 888 558
6389
IRinfo@megola.com
http://www.megola.com