JUPITER, FL, Jan 30, 2014 - RenuEn Corporation (OTC Pink: RENU) a renewable energy development and energy procurement and construction Company, announced today that its board of directors and majority stockholders approved and submitted the requisite paperwork to FINRA to effectuate a 1-for-50 reverse stock split. In light of the Company's expected growth, the reverse stock split is intended to enable the company to enter into agreements in the future, as well as acquisitions, financing or recapitalization transactions to position itself for its anticipated growth. Additionally, the company entered into an employment agreement with J. Charles Nemes to secure his services as our Chief Executive Officer. The company believes that Mr. Nemes is vital and his efforts and judgment are expected to contribute to the company's growth and success. The equity compensation component of Mr. Nemes' employment agreement is intended to assist in further aligning his interests to those of the company's other shareholders. This equity component and the vesting periods will be disclosed in the 2014 Q1 quarterly filings.
Jeff Nemes, RenuEn CEO commented, "As previously announced, I have a strong desire to position the company for future growth as our new management team seeks to implement its sales and marketing plans. Since taking over as CEO and the hiring of Laura Anthony, Esq. of Legal & Compliance, we have made a determination that immediate action was needed to restructure our capitalization to create the availability of additional common and preferred stock for future transactions. I believe this recapitalization plan will put this company on a path to fiscal stability and a solid financial foundation." Nemes added, "Because we have decided to pursue a more conservative approach to growth by pursuing revenue generating activities while reducing costs, it is my opinion that our renewed focus on sales and revenue, coupled with my continued mandate of fiscal responsibility, will position RenuEn for sustainable, long term growth in the renewable energy field."
When the reverse stock split becomes effective, every fifty shares of our common stock outstanding will automatically combine into one new share of common stock with no change in par value per share. This will reduce the number of shares of common stock outstanding from approximately 700 million to approximately 14 million. The Company's authorized number of shares of common stock will be reduced from 1 billion shares to 500 million shares. The company has also authorized 20 million shares of preferred stock that will be reserved for issuance in possible future transactions. None of the preferred shares are being issued at this time as a result of this recapitalization. The reverse stock split will affect all issued and outstanding shares of the company's common stock, as well as common stock underlying stock options and warrants outstanding immediately prior to the effectiveness of the reverse stock split. In connection with the reverse stock split, the CUSIP number for the common stock will change and be reported upon final FINRA approval.
Except for adjustments that may result from the treatment of fractional shares, which will be rounded up to the nearest whole number on a certificate-by-certificate basis, each stockholder will beneficially hold the same dollar value of common stock immediately following the reverse stock split as they held immediately prior to the reverse stock split.
Stockholders holding certificated shares or shares through a brokerage account will have their shares automatically adjusted to reflect the reverse stock split as of its effective date. Although the issuance of new stock certificates will not be required, stockholders may obtain a new certificate from the company's transfer agent, Island Stock Transfer.
Nemes ended by stating, "I will be discussing this reverse split and the business strategy behind it on tonight's shareholder conference call scheduled for 5:30 e.s.t."
To participate in tonight's call:
Please register for RenuEn Corp 2013 Q4 Shareholder Conference Call on Jan 30, 2014 5:30 PM EST at:
After registering, you will receive a confirmation email containing information about joining the webinar.
About RenuEn Corporation
RenuEn Corporation is a Renewable Energy Development, Engineering, Procurement and Construction (EPC) Company. The company focuses on Renewable Power projects and the development of solar, geothermal and other renewable energy strategies installing energy saving products and services for residential and commercial clients.
Safe Harbor Statement
This news release contains statements that involve expectations, plans or intentions (such as those relating to expected growth, future business or financial results or transactions) and other factors discussed from time to time in the Company's filings with the OTC Markets. These statements are forward-looking and are subject to risks and uncertainties, so actual results may vary materially. You can identify these forward-looking statements by words such as "may," "should," "expect," "anticipate," "believe," "estimate," "intend," "plan" and other similar expressions. Our actual results could differ materially from those anticipated in these forward-looking statements as a result of certain factors not within the control of the company. The company cautions readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. The company disclaims any obligation subsequently to revise any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.
Contact and Inquiries for Investor Relations:
Paramount Advisors, LLC
SOURCE: RenuEn Corp