Message #2 From:
NewsBot Date: June 24, 2005 07:41:00 AM
UNCN News Unico Inc. Files New 14A Preliminary Proxy Statement
SAN DIEGO--(BUSINESS WIRE)--June 24, 2005--Unico Inc. (OTCBB:UNCN) today announced that the company has filed a new 14A Preliminary Proxy Statement with the Securities and Exchange Commission requesting shareholder votes on three proposals, one of which would authorize the board to withdraw the company's election to be treated as a business development company. This 14A replaces the one filed on April 14, 2005.
Shareholders of record will be invited to attend a special meeting where the proposals will be considered and voted upon. Unico expects that the meeting date will be in August, and a subsequent 14A Definitive Proxy Statement that includes the meeting date, time and location will be filed and sent to shareholders of record.
The three proposals to be considered by shareholders have changed from those included in the previous Preliminary 14A filing. The first proposal is to consider and vote upon an authorization for the company's board of directors to withdraw Unico's election to be treated as a business development company pursuant to Section 54(c) of the Investment Company Act of 1940. Assuming that there is an affirmative vote on the first proposal, shareholders will consider and vote upon a proposal to amend the company's Articles of Incorporation to authorize 2,020,000,000 shares of capital stock of the company, of which 2 billion shares will relate to common stock and 20 million shares will relate to preferred stock. This proposal will also authorize the board of directors, at its discretion, to effect a reverse stock split of the company's Common Stock at a ratio up to one-for-twenty during the 12-month period following the date of the special meeting of shareholders. The third proposal is to consider and vote upon the company's 2005 Non-Qualified Stock Option Plan. Unico's board of directors has recommended voting in favor of each of the proposals to be considered at the special meeting of shareholders.
"After evaluating and discussing the feasibility of the company continuing as a business development company, Unico's board of directors has determined that in the current environment, continuing to be regulated as a business development company is no longer appropriate and will hinder Unico's future growth," commented Mark A. Lopez, chief executive officer of Unico Inc. "The board believes that Unico would be better served to focus its efforts on the operation of businesses, namely the mining activities of the Deer Trail, Bromide Basin and Silver Bell mines, rather than act as a passive investor.
"The board of directors continues to ask for the support of shareholders, who we know to be strong believers in the value of Unico's mine holdings. We look forward to filing the Definitive 14A Proxy Statement, which will finalize the date for the special meeting of shareholders, and finally having the proposal under consideration voted upon by our stockholders," added Lopez.
About the Company
Unico Inc. filed an N-54 election with the SEC on July 12, 2004, to become a Business Development Company, pursuant to Section 54 of the Investment Company Act of 1940. The company's investment portfolio currently consists of three subsidiaries, the Silver Bell Mining Co. Inc., the Deer Trail Mining Co. LLC and the Bromide Basin Mining Co. LLC. The core focus of Unico is to provide the capital and management assistance necessary for its subsidiaries to return value to Unico shareholders.
Forward-Looking Statements
The news release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and such Section 21E of the Securities Exchange Act of 1934, as amended. Such statements are subject to risks and uncertainties that could cause actual results to vary materially from those projected in the forward-looking statements. The company may experience significant fluctuations in operating results due to a number of economic, competitive and other factors. These factors could cause operation results to vary significantly from those in prior periods, and those projected in forward-looking statements. Information with respect to these factors which could materially affect the company and its operations are included on certain forms the company files with the Securities and Exchange Commission.
