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Herborium Group Decreases the Number of Authorized Shares, Approves the Reverse Stock Split and Decreases Company Debt by One Million Dollars
Herborium Group Decreases the Number of Authorized Shares, Approves the Reverse Stock Split and Decreases Company Debt by One Million Dollars.
About this update from Herborium Group, Inc.
[{"type":"text","content":"\n \n \n Herborium Group Decreases the Number of Authorized Shares, Approves the Reverse Stock Split and Decreases Company Debt by One Million Dollars\n \n \nHerborium Group Decreases the Number of Authorized Shares, Approves the Reverse Stock Split and Decreases Company Debt by One Million Dollars\n \n FORT LEE, NJ--(Marketwired - Jan 27, 2014) - Herborium® Group, Inc. (OTC Pink: HBRMD) (OTC Pink: HBRM), www.herborium.com, a Botanical Therapeutics® Company announced today that on January 14, 2014, the Board of Directors and shareholders owning the majority of the voting securities of Herborium Group, Inc. approved a decrease in the number of the Company's authorized common shares, rolling the number back to 950,000,000 shares. The Board and majority shareholders have also authorized a 1,000 to 1 reverse common stock split (the \"Reverse Split\"). In addition, a reduction of the Company's debt by $1 million dollars was achieved by Management's conversion of a substantial portion of their accrued salaries, disclosed as liabilities on the balance sheet of the Company, at a conversion rate of $0.0004 for one Common Share, representing more than 60% premium over the current public market price (the \"Conversion Transaction\"). This Conversion Transaction expresses a high level of trust in the Company's future by Management. \n The Board of Directors believes that lowering the number of authorized shares and the Reverse Split will result in an increase in the market price of the common stock and may encourage more investor interest, and improve the marketability of the common stock via a broader range of investors and brokers, thus enhancing liquidity. This should facilitate potential future acquisitions, business alliances and JVs as well as further product licensing and development opportunities. The Company will also be in a better position to attract needed talent as these corporate actions will facilitate the establishment of an employee and advisors stock compensation plan. Finally, we believe that this significant reduction of debt, combined with the Conversion Transaction, not only improves the Company's financial profile but directly enhances shareholder value. \n The Reverse Split will become effective on January 27, 2014, and the appropriate documents have been filed with the Secretary of State of the State ...