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Ableauctions Estimates Distributions to Total $1.25 - $1.50 Per Share If Reverse Share Exchange Consummated
Monday January 25, 5:47 pm ET
BURNABY, British Columbia--(BUSINESS WIRE)--Ableauctions.com Inc. (NYSE AMEX: AAC) (the “Company”) announced today that, if the acquisition of SinoCoking is consummated, the Company will transfer its remaining assets into a liquidating entity for the purpose of liquidating the assets, paying any liabilities and distributing the net proceeds to its shareholders.
The Company announced on December 21, 2009 that it had established December 30, 2009 as the record date for determining the shareholders who will be entitled to receive distributions from the liquidating entity. However, no record date is required for determining the shareholders who will be entitled to receive distributions from the liquidating entity. Instead, all distributions from the liquidating entity will be payable to the shareholders of Ableauctions who hold shares immediately prior to the closing date of the Acquisition (the “Old Shareholders”).
The Old Shareholders will also, collectively, own approximately 3% of the Company’s outstanding common stock following the anticipated 1-for-20 reverse stock split set to occur on the closing date. Upon completion of the Acquisition, the Company would own 100% of the business and operations of SinoCoking, a China-based coke and coal producer. For further information, readers should review the Company’s definitive proxy statement filed with the SEC on November 27, 2009.
The Company estimates it will make total distributions of approximately $1.25 to $1.50 per share from the liquidating entity to the Old Shareholders over an unspecified period of time, if the Acquisition closes. Because the amount of the distributions will be based on the amount received by the liquidating entity for the sale of the assets, less the costs, expenses (including expenses related to currency conversion) and fees attributable to such sales and the expenses attributable to the liquidating entity, the Company cannot provide more than an estimate to the Old Shareholders of the distribution amount, based on its current knowledge. The Company plans to pre-announce the proposed closing date for the Acquisition in a subsequent press release, however, there is no assurance that the Acquisition will be consummated.
If the Acquisition is not consummated, further distributions to be made by the Company, if any, will be determined by the Company’s board of directors and a press release announcing the record dates and payment dates for those distributions will be issued.
For a comprehensive Corporate Update and prior releases, visit www.ableauctions.com. For more information, contact Investor Relations at investorrelations@ableauctions.com
This press release contains forward-looking statements within the meaning of section 27A of the Securities Act of 1933 and section 21E of the Securities Exchange Act of 1934, including statements relating to the amount of the distribution from the liquidating entity and the acquisition of SinoCoking (Top Favour Limited). The words or phrases "would be," "will allow," "intends to," "may result," "are expected to," "will continue," "anticipates," "expects," "estimate," "project," "indicate," "could," "potentially," "should," "believe," "considers" or similar expressions are intended to identify "forward-looking statements." Actual results could differ materially from those projected in the forward-looking statements as a result of a number of risks and uncertainties. Such forward-looking statements are based on current expectations, involve known and unknown risks, a reliance on third parties for information, transactions that may be cancelled, and other factors that may cause our actual results, performance or achievements, or developments in our industry, to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from anticipated results include but are not limited to, risks and uncertainties related to the approval by our shareholders of the Share Exchange transaction and the other actions to be voted upon, our ability to attract capital financing based on the impending reverse merger with Sino Coking, our ability to obtain third party consents to the contemplated transactions if any, the performance of our staff, loss of management personnel, an inability to obtain financing as and when we need it, competition from other on-line auction businesses, our ability to implement or manage our expansion strategy, general economic conditions, and other factors that are detailed in our Annual Report on Form 10-K and on documents we file from time-to-time with the Securities and Exchange Commission. Statements made herein are as of the date of this press release and should not be relied upon as of any subsequent date. The Company cautions readers not to place undue reliance on such statements. The Company does not undertake, and the Company specifically disclaims any obligation, to update any forward-looking statements to reflect occurrences, developments, unanticipated events or circumstances after the date of such statement.
