Orlando, FL 6/15/12 (StreetBeat) -- DiMi Telematics International, Inc. (OTCBB: DIMI), a cloud-based M2M communications solutions provider, announced yesterday that it has retired 100 million shares of common stock, resulting in a 23% reduction in the number of common shares issued and outstanding.
The retirement of these shares occurred in connection with an Exchange Agreement entered into by the Company and Lyle Hauser, one of DiMi's co-founders. Hauser has exchanged 100 million shares of the Company's common stock for 1,000 shares of newly created Series A Preferred Stock. Immediately following the exchange and retirement of the common shares, the number of common shares issued and outstanding was reduced from 427,716,928 to 327,716,928.
In the event the Company does not achieve a minimum of $0.01 earnings per share for its fiscal year ended August 31, 2013, Hauser will have the right to return the 1,000 shares of Series A Preferred Stock and be reissued 100 million shares of DiMi's common stock. If the Company's earnings per share are equal or greater to $0.01, then all shares of the Preferred Stock shall be redeemed by the Company without any consideration payable to Hauser.
Commenting on the Exchange Agreement, Barry Tenzer, President and CEO of DiMi Telematics, stated, "The exchange and retirement of these common shares is viewed by our management team as a very positive step toward improving our Company's overall capital structure and enhancing value for both our new and existing shareholders. Moreover, Lyle's decision to enter into this share exchange represents a much-appreciated vote of confidence in DiMi's exciting business plan and positions us well to implement our strategic growth initiatives in 2012 and well beyond."
For more detailed information, please refer to the related 8-K to be filed with the U.S. Securities & Exchange Commission later today.
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