Message #41 From:
NewsBot Date: December 1, 2005 12:00:00 AM
STTC News SoftNet Technology Corp. Retires to Treasury 100 Million Shares Reducing Total Shares Outstanding by 25%
BERNARDSVILLE, N.J.--(BUSINESS WIRE)--Dec. 1, 2005--SoftNet Technology Corp. (OTCBB Symbol: STTC) (German WKN#: A0B7RZ) announced today that they have retired 100 million of their outstanding shares. The total shares outstanding have been reduced from 399 million to 299 million, a reduction of just over 25%.
Softnet had previously entered into a stock loan program with a European funding group and the shares were issued as collateral. The financing never closed. The shares were returned to the transfer agent on November 29, 2005 and have been cancelled. SoftNet Technology also has another 150 million restricted shares issued in the name of Pini Ben David. These shares are being held in an escrow account at a reputable bank in Switzerland for a potential loan. If this loan does not close shortly, these shares will be returned to the company and cancelled as well.
STTC has been able to streamline operating costs with the consolidation of business operations and the divestment of non-profitable and/or non-producing divisions and subsidiaries of SoftNet. Upon the expected closing of the Acquisition of Inspara on December 15, 2005 (see 8K filing), STTC will be a self sufficient Company. Funding will no longer be required for the future operation of SoftNet Technology.
"We are very pleased to report this drastic reduction in shares. This is a significant event because it promotes shareholder value. It is anti-dilutive and demonstrates our on-going commitment to all of our stakeholders. STTC has recently refined its business model, realigned its mission and restructured its operations. As a result, SoftNet, at this time, requires no outside financing activities," stated James Farinella, Softnet Technology President and CEO.
Please visit our website at www.softnettechnology.com for more information or for Investor Relations, please contact Stephanie Soleas, Blue-Sky Solutions at (877) 4-BLUE-IR or sttc@blueskyir.com. You may also call the company directly at 866-898-4842 (local - 908-204-9911) James M. Farinella, CEO.
The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements made on behalf of the company. All such forward-looking statements are, by necessity, only estimates of future results and actual results achieved by SoftNet Technology Corp (STTC) may differ materially from these statements due to a number of factors. STTC assumes no obligations to update these forward-looking statements to reflect actual results, changes in assumptions or changes in other factors affecting such statements. You should independently investigate and fully understand all risks before making investment decisions.
