From the Wires
Infrastructure Developments Corp. Issues Corporate and Shareholder Update
By: Marketwired .
Dec. 12, 2012 10:58 AM
SALT LAKE CITY, UT -- (Marketwire) -- 12/12/12 -- Infrastructure Developments Corp. (OTCQB: IDVC) (the "Company") wishes to clarify certain issues regarding the public market for its common stock.
On September 28, 2012, the Company informed shareholders that the Depository Trust Company (DTC) had imposed a deposit transaction restriction (or a "Deposit Chill") on the Company's common stock, and that the Company was in the process of having the DTC lift the Deposit Chill. The Company's counsel continues its efforts to remove the Deposit Chill.
Deposit Chills prevent shareholders from depositing physical share certificates into the market for sale. This affects shareholders who are holding physical certificates of the Company's stock, and may affect the purchase and sale of stock currently held in some brokerage accounts.
"We are working diligently to get this issue behind us," said Eric Montandon, the Company's president. "Since most of our shareholders do not have physical stock certificates, but rather stock entered in the DTC system and purchased and sold electronically via broker dealers, they will not be affected. However, if DTC chooses to keep a chill on deposits of our stock, it may make it harder for us to raise funds via private placements or acquire any new business in the future by issuing stock, as the recipients of the stock would not be able to deposit it for sale."
The Company had previously reported that it was in the process of negotiations to acquire a new business, but such negotiations are on hold because of the Deposit Chill. The Company is still pursuing opportunities in the CNG (compressed natural gas) powered vehicle industry through its subsidiary Cleanfield Energy, Inc.
The Deposit Chill was applied due primarily to the conversion of shares of the Company's common stock by one unrelated entity. The Company borrowed funds from this entity on terms that included a conversion option. Of the amount borrowed, $180,000 was converted into common stock in the past 18 months, the Company pre-paid $19,000 on July 24, 2012, and $15,000 is left remaining for conversion.
A number of statements contained in this press release are forward-looking statements. These forward-looking statements involve a number of risks and uncertainties including the Company's development, its ability to procure design and management projects, competitive market conditions, and its prospects for securing additional sources of financing as required. The actual results that the Company may achieve could differ materially from any forward-looking statements due to such risks and uncertainties. The Company encourages the public to read the information provided here in conjunction with its most recent filings on Form 10-Q and Form 10-K. The Company's public filings may be viewed at www.sec.gov.
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