Axia Group Inc. Announces Dividend of Stock in MSEM to Axia Shareholders
SAN DIEGO, Calif., May 29, 2007 /PRNewswire-FirstCall via COMTEX/ -- Axia Group, Inc. (OTC Pinksheets: AXGO), announced today that its plan to distribute a dividend to shareholders of Axia in the form of restricted common stock in MotorSports Emporium (OTCBB: MSEM). On May 2, 2007, Axia sold its subsidiary of the company, International Building Technologies, to MotorSports Emporium Inc. for $1.0 million cash and 20 million shares of restricted common stocks of MSEM.
Management will distribute approximately SIXTEEN MILLION (16,000,000) SHARES OF MSEM as dividend on a pro rata basis to shareholders in Axia. The estimated 16 million shares of restricted common stock of MSEM will be issued to the Axia shareholder of record date for the dividend has been set as the close of market on Friday June 8, 2007. AXIA Shareholders of record on this date will each receive 40 shares of restricted common stock of MSEM for each share of stock he or she holds in Axia. Shareholders can buy stock between now and June 5, 2007 and those purchases will apply to the calculation of how much MSEM stock a shareholder receives. Axia stock purchases made after that date will not apply. The remaining 4 million shares will be held back in case of any disputes, errors or other issues.
Axia Shareholders should receive the new MSEM common stock certificates or credited to your brokerage account on or before July 31, 2007. The stock in MSEM will be restricted stock, as per Rule 144 of the Securities and Exchange Commission, which means it cannot be traded for a period of two years from the record date unless the stock is registered by MSEM. At this time, MSEM has not stated any intention to register this stock.
Axia shareholders do not have to surrender their AXGO stock or pay for dividend. All costs, including the distribution of certificates, will be done at the cost of the company; shareholders will not have any costs to pay for this dividend. However, shareholders should be aware there may be individual tax consequences as a result of receiving these shares and should seek guidance from tax authorities. |
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