Message #37 From:
NewsBot Date: January 22, 2007 05:31:00 AM
CBAY News Cal-Bay International, Statement of Clarification
CARLSBAD, Calif.--(BUSINESS WIRE)--Cal-Bay International (OTCBB:CBAY) is making the following disclosures
in order to clarify and update shareholders as to the current status of
the company’s common stock capitalization and
asset base.
As of this date there are approximately 216 million shares of common
stock issued and outstanding held by approximately 2500 shareholders. Of
this total approximately 40% are currently being used for collateral for
a series of loans that are being used primarily for real estate
acquisition purposes. As such these shares are not in the float and are
intended to be retired once the loans have been repaid.
The recently announced increase in the authorized share structure is
intended to provide the company with flexibility in its pursuit of
additional real estate acquisitions. It has not been undertaken with the
intention of adding unnecessary dilution to the company’s
capitalization, but instead provides Cal-Bay with viable means to enter
into accretive acquisitions with a currency that may not necessarily be
dilutive in the long run, as the shares become retired upon their
release from collateralization. Management has determined that this is
the best way for it to be able to attract financing for the purpose of
enhancing shareholder valuation through acquisition, as it works toward
the longer-term goal of building a valuable portfolio of residential and
commercial real estate assets in growing markets.
Cal-Bay International currently owns approximately $100M in real estate
assets, with a retained equity (book) value of approximately $40M. An
additional $60M in acquisitions are currently pending in escrow or in
contract, in addition to the recently announced Louisiana property. As
acquisitions continue to close, the book value of the company should
continue to increase significantly, as the company’s
past two years track record has disclosed, thereby adding additional
shareholder value to the company.
FORWARD LOOKING SAFE HARBOR 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 and 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. 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.
