Business
PayChest Announces Finality on Stock Audit
PayChest Announces Finality on Stock Audit.
About this update from Paychest Inc
[{"type":"text","content":"HUNTINGTON BEACH, CA--June 22, 2007 - PayChest Inc. (Other OTC: PYCT Pinksheets) PayChest today announced its results to the public regarding the recently completed stock audit. Other than two minor claims outstanding and still being negotiated, the Company audit revealed strong results:\n\nThe total number of shares outstanding were reduced by 5,825,544,340 to 16,620,990,045 from 22,446,534,385 in October 2006, a 26% (twenty six percent) reduction. The float was decreased by 1,399,572,181 to 16,379,110,203 from 17,778,682,384 in October 2006 and the number of shareholders increased by 584 to 6,580 from 5996 in October 31, 2006. \n \nThe asset position has not changed throughout this stock reduction process.\n\nIn addressing repeated queries from hundreds of shareholders, regarding PayChest's position on reverse stock splits, management states it's response as follows:\n\nThe company had two choices to resolve the problems associated with the volatility, dilution and price per share. The choices were to reverse split or reduce the number of outstanding shares. \n\nA reverse stock split would not change the percentage ownership of the shareholders with dilutive shares. Historically, the majority of stock splits have frequently resulted in a twenty to forty percent decrease in the shareholder value. Furthermore, a reverse split would erode our shareholder loyalty and is usually received very negatively. The desire of the majority of our shareholders was not to utilize a reverse stock split and this greatly influenced our decision to opt for a stock reduction process instead.\n\nUtilizing the stock reduction approach was the most logical, though time consuming. This reduction increases current and future asset to share values by approximately 26%. \nThe company believes that is has prevented future dilution and volatility of the stock and established a base in which to build stronger stockholder value. \n\n\"To protect our shareholders interests and that of the company, this grueling seven month negotiation process has proven effective and established a platform to integrate valuable assets into PayChest, with the knowledge that the majority of the shares are now in the public's hands. We hope this clarifies the constant debate between the stock reduction and the reverse split\" said Mr.Pillay, PayChest's CEO.\n\nIn response to inv...