Cal-Bay International, Statement of Clarification
CARLSBAD, Calif., Jan 22, 2007 (BUSINESS WIRE) --
Cal-Bay International (OTCBB:CBAY) is making the following disclosures in order to clarify and update shareholders as to the current status of the company\'s common stock capitalization and asset base.
As of this date there are approximately 216 million shares of common stock issued and outstanding held by approximately 2500 shareholders. Of this total approximately 40% are currently being used for collateral for a series of loans that are being used primarily for real estate acquisition purposes. As such these shares are not in the float and are intended to be retired once the loans have been repaid.
The recently announced increase in the authorized share structure is intended to provide the company with flexibility in its pursuit of additional real estate acquisitions. It has not been undertaken with the intention of adding unnecessary dilution to the company\'s capitalization, but instead provides Cal-Bay with viable means to enter into accretive acquisitions with a currency that may not necessarily be dilutive in the long run, as the shares become retired upon their release from collateralization. Management has determined that this is the best way for it to be able to attract financing for the purpose of enhancing shareholder valuation through acquisition, as it works toward the longer-term goal of building a valuable Portfolio of residential and commercial real estate assets in growing markets.
Cal-Bay International currently owns approximately $100M in real estate assets, with a retained equity (book) value of approximately $40M. An additional $60M in acquisitions are currently pending in escrow or in contract, in addition to the recently announced Louisiana property. As acquisitions continue to close, the book value of the company should continue to increase significantly, as the company\'s past two years track record has disclosed, thereby adding additional shareholder value to the company.
FORWARD LOOKING SAFE HARBOR STATEMENT: To the extent that this release discusses any expectations concerning Future plans, financial results or performance, such statements are forward-looking within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended, and are subject to substantial risks and uncertainties. Actual results could differ materially from those anticipated in the forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof and reflect only management\'s belief and expectations based upon presently available information. These statements, and other forward-looking statements, are not guarantees of future performance and involve risks and uncertainties. The Company assumes no obligation to update any of the forward-looking statements in this release.
SOURCE: Cal-Bay International, Inc.
Cal-Bay International, Inc. Tim Garlin, Public Relations, 760-930-0100 Fax: 760-930-0200 IR@calbayinternational.com www.calbayinternational.com
Copyright Business Wire 2007
|
