R/S coming Homeland Integrated Security Systems to Propose New Name in Conjunction With a Recapitalization Plan
Posted: 2007-10-23 10:03:49
ASHEVILLE, N.C., Oct. 23, 2007 (PRIME NEWSWIRE) -- Homeland Integrated Security Systems, Inc. (Pink Sheets:HISC) announced today that it will submit a proposal to shareholders for a name change to GlobalTek Corporation as part of its strategy to better position the company for potential growth through acquisition or merger. As part of its strategic plan, the Board of Directors has also approved a plan for recapitalization of the Corporation. The plan will consist of a 400 for 1 exchange of current HISC shares (the Old shares) for new HISC shares (the New shares). For example, if a shareholder now owns 40,000 HISC Old shares, the shareholder would own 100 HISC New shares. According to the company, after the recapitalization there will be approximately 24,000,000 HISC New common shares outstanding.
According to the company, the name change, which requires approval of a majority of shareholders, will be proposed to NASD shortly after the common stock recapitalization is completed. The recapitalization plan has been submitted to NASD for approval. Both events are part of a previously announced plan to eventually move GlobalTek Corporation to the OTC Bulletin Board. As a fully reporting company, it will be easier to raise capital and pursue multiple acquisitions. Once on the OTC Bulletin Board, management plans to evolve GlobalTek into a holding company with the current Homeland Integrated Security Systems operations as one operating division. The company plans to acquire private and public companies that have unique products and/or technologies and solid growth potential.
"We believe that these moves are in the best long term interest of our shareholders," stated Fred Wicks, CEO and President of Homeland Integrated. "We have utilized our funding to build our portfolio of software and hardware products. Our next challenge is to establish a foundation so that we can grow through sales and acquisition. These moves will make us more attractive and credible when we discuss potential mergers or acquisitions."
"A lot of thought and deliberation took place at the board level when making this decision," stated Brian Riley, Chairman of the Board for Homeland Integrated Security Systems. "We evaluated the current status of the company and made the hard choices that we believe will allow us to move on to the next level."