Message #91 From:
NewsBot Date: March 6, 2008 01:10:26 PM
TrackPower Announces Further Restructuring
TrackPower, Inc. (OTCBB: TPWR)("TrackPower" or the "Company"), a
comprehensive service provider and advisory organization to racing and
wagering interests, today announced that it has disposed of its
remaining interest in American Racing and Entertainment LLC ("American
Racing") and has entered into an agreement pursuant to which it
restructured its preferred stock obligations.
TrackPower held an approximate 5% membership position in American
Racing and Entertainment, LLC, which owns two gaming and horseracing
facilities in New York State known as Tioga Downs and Vernon Downs. The
remaining interest was acquired by the controlling members of American
Racing for total consideration of $934,016 on February 29, 2008. At
closing, TrackPower repaid an $834,016 15% secured promissory note to
the controlling members. Further detail of the transaction will be
provided with the Company's Form 10KSB for the year ended February 29,
2008.
In addition, the Company agreed to issue 1,220,000,000 restricted
shares of its common stock as full and complete settlement of its
$3,000,000 8% Series A convertible preferred share obligations. As at
February 29, 2008, the Company owed the preferred stock holder $440,000
of accrued and unpaid dividends, making the total preferred share
obligation $3,440,000 and the effective conversion rate $0.00282 per
share.
John G. Simmonds, TrackPower CEO stated; "We believe that at this
time these restructuring steps are in the best interests of the
Company. After affecting these issuances over $4 million of preferred
stock and other liabilities have been either converted to common equity
or have been repaid. The resulting balance sheet will swing from a net
asset deficit of approximately $1.0 million at November 2007 to a
surplus at February 2008. There are new and exciting business
opportunities to be announced shortly, so it was necessary to
reposition the Company for the future."
TrackPower has been focused on acquiring interests in horseracing
and gaming facilities and is currently repositioning to become a
comprehensive service provider and advisory organization to racing and
wagering interests, with a specific focus on the growing Latin American
market. The company was founded in 1997 and is currently based in
Toronto, Ontario, Canada.
This release includes projections of future results and
"forward-looking statements" as that term is defined in Sections 27A of
the Securities Act of 1933 as amended (the "Securities Act"), and
Section 21E of the Securities Exchange Act of 1934 as amended (the
"Exchange Act"). All statements that are included in this release,
other than statements of historical fact, are forward-looking
statements. Although management believes that the expectations
reflected in these forward-looking statements are reasonable, it can
give no assurance that such expectations will prove to have been
correct. Important factors that could cause actual results to differ
materially from the expectations are disclosed in this release,
including, without limitation, in conjunction with those
forward-looking statements contained in this release.
