Penny Stock News From Around The OTC
Jul 28, 2008 9:15:00 AM
Copyright Business Wire 2008
NEW YORK--(BUSINESS WIRE)--
Encompass Group Affiliates, Inc. today commented on the recent surge in the trading volume of its common stock, indicating that it believes the increase in trading activity is principally due to the number of common shares which were recently issued to a class of preferred stockholders and then became available for sale. This conversion followed the Company's recent proxy solicitation which concluded in April 2008 that, among other matters, increased the number of authorized shares of common stock to a legally required level. This event triggered the automatic conversion of the Company's Series A-2 convertible preferred stock into approximately 8,400,000,000 shares of common stock.
"The Company has no specific knowledge as to which institutional or individual stockholder or stockholders may have decided, for their own reasons, to sell all or a portion of their common stock ownership interests at this time." said Wayne Danson, Chief Executive Officer & President of Encompass Group Affiliates. "Furthermore, there have been no stock sales by management or other insiders", he added.
"We have no specific knowledge of any material adverse information about the Company which has not been disclosed in our SEC filings or press releases." said Mr. Danson.
"The Company does not generally comment on changes in the volume or price of its stock, and this announcement should not be taken as an indication that we will make any further comment at any future time on such matters." said Mr. Danson.