From the Wires
Citadel EFT, Inc. (CDFT) CEO Gary DeRoos Agrees to Retire 40,000,000 Convertible C Shares, Opens Discussion on Retiring Significant Amounts of Issued Capital
By: Marketwire .
Feb. 11, 2013 08:45 AM
OCEANSIDE, CA -- (Marketwire) -- 02/11/13 -- Citadel EFT, Inc.'s (OTCQB: CDFT) CEO Gary DeRoos announces that he has retired 40,000,000 Convertible 'C' Preferred Shares that he had issued to himself after the asset purchase of Art to Go. He is also considering retiring a significant portion on the issued capital of the common stock in order to bring the market capitalization in-line with the audited equity of the Company. The Issued Capital is at present 233,000,000 outstanding, whereas Mr. DeRoos owns approximately 168,000,000 of those shares.
Gary DeRoos, CEO of Citadel EFT, further states, "I made a mistake in issuing those securities to myself, not realizing that issuing more preferred securities could affect the overall evaluation of the Company. These preferred securities, however, don't increase the present issued common stock capital of the company. But, I now realize it did affect the audited equity of the Company and possibly affects the price of the common stock. I also believe that the amount of issued shares that I have is too much. I have Series B Preferred stock which affords me everything I need. I have issued myself the majority of the common shares and I really see it now as an impediment to building shareholder value. I will be sitting down with our professional consultants and accountants over the next weeks to the possibility of retiring much more of the issued capital of the Company. We will figure out that number after the audit is released and after careful discussion with the majority stock holders."
He further states, "The priority moving forward is to list the Company's common shares on to the American Stock Exchange (AMEX). We need to have $4,000,000 minimum in stock holders' equity, a $50,000,000 market cap, and a $2.00 price per share. We believe with the consistent growth of Citadel EFT's business operations, and management's commitment to purchasing value-added assets that enhance the Company's balance sheet, we are on our way."
CDFT's capital structure needs to be overhauled to reflect management's desire to meet AMEX standards. Lowering the issued capital, and refraining from issuing any securities where the value to the stockholders, officers and directors are not already substantiated and proven, will be the Company's focus.
Thus, lowering the number of issued shares in the Company would signal to the market that the Company is serious about increasing its shareholder values and that management is serious in building shareholder equity value.
About Citadel EFT, Inc:
Based in Oceanside, CA, Citadel EFT, Inc. provides credit card merchant account services to the retailers, mail order companies and the online service providers. The Company provides a free terminal to the business owner and charges no yearly fees, monthly minimums, statement, or address verification fees. Citadel markets its services directly and also through resellers, www.credit-card-processing.com.
CDFT cautions that the statements made in this press release constitute forward-looking statements, and not guarantees of future performance and actual results or developments may differ materially from the projections in the forward-looking statements. Forward-looking statements are based on the estimates and opinions of the management at the time the statements are made.
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