Final Clarification on the 95% Mandatory Buy Back of PAIM Common Shares Effective Date July 20, 2007
Stock Symbol “PAIM” and CUSIP # Remain The Same; DTCC & Member Banks And Brokerages Been Notified: Segregate 95 % PAIM Stock Be Restricted On July 23, 2007, Pearl Asian Mining Announces
Pearl Asian Mining Industries, Inc. with Stock SYMBOLS: U.S.A. (OTC common shares: PAIM; OTC preferred shares: PAIMP); Germany (GER:R1Z) and (FWB:R1Z) announces that it will keep the same Common Share CUSIP # 704755107 and Symbol: PAIM for this mandatory buy back, because it is not a reverse split and it has no X-date, and no record date but only an effective date of July 20, 2007.
Further clarifications on the mandatory buy back to be paid in check by the Issuer or Pearl Asian Mining Industries, Inc. as follows:
July 20, 2007 – the Effective Date of the 95% Buyback.
July 23, 2007 – the Effective date of new outstanding shares where only 5% of each individual shareholder’s PAIM shares shall remain in the shareholder’s account and shall be freely trade-able.
July 23 through October 10, 2007 – Surrender Period All shareholders, banks and brokerages must surrender PAIM shares to the Transfer Agent – AGN Associates & Stock Transfer Services, LLC, 5431 Auburn Blvd., #178, Sacramento, CA 95841 for the cancellation of the previous certificates; issuance of new certificates for the remaining 5% and return of approximately 8,600,000,000 common shares to the company’s treasury and the company to issue the payment of $.00002 per share of the 95% shares.
October 10, 2007 – Surrender Deadline Date Common share certificates not surrendered on this date will bear a “Stop Transfer” and will be cancelled and replaced with a check for the 95% at $.00002 per share and a new certificate for the remaining 5% of the shares previously held by that shareholder.
October 10, 2007- Pay Date PAIM shall commence mailing the checks to the latest known address of shareholder from the company.
The DTCC and its member banks and brokerages have been notified to segregate 95 % of each individual shareholder's PAIM holdings to a restricted account starting on July 23, 2007. This will prevent any shareholder from inadvertently selling more than their 5% thus avoid incurring a short position in their stock. The remaining 5 % of each individual shareholder's PAIM shares shall remain in the shareholder's account and shall be freely trade-able.
To minimize the costs to shareholders, the Transfer Agent, for this particular buy back transaction only, shall charge $25.00 for the issuance of each new certificate, while the cancellation charge for each certificate will be $10.00. The total cost will be $35.00 payable to AGN Associates Stock Transfer Services, LLC.
Furthermore, note that Preferred Shares (PAIMP) CUSIP #704755206 and Convertible Debenture CUSIP #704752AA2 are NOT subject to the 95% buyback.
The Preferred Shares (PFD) can be converted at any time with the following conversion factor.
Period
Conversion Rate
March 31, 2007 through March 30, 2008 5,000 PFD for each common share
March 31, 2008 through March 30, 2009 2,500 PFD for each common share
March 31, 2009 through March 30, 2010 1,250 PFD for each common share
March 31, 2010 through March 30, 2011 625 PFD for each common share
March 31, 2011 and after 500 PFD for each common share
Likewise, the Convertible Debenture can also be converted back to common shares at a fixed rate cost of $.010 per share at any time on or before the maturity date of June 15, 2011.
In order to convert the preferred and convertible debentures observe the following procedures:
1. The certificate must bear the name of the beneficial owner.
2. The certificate must be endorsed with a Medallion Signature Guarantee Stamp.
3. An instruction letter requesting to convert the certificate must be submitted with the original certificates.
4. A check payable to AGN Associates & Stock Transfer Services, LLC for the processing fee ($25 for each certificate cancelled and $25 for each new certificate issued) must be submitted along with the instruction letter, original certificate bearing a Medallion Guarantee Stamp to the Transfer Agent at 5431 Auburn Blvd., #178, Sacramento, CA 95841 Attn: Conversion Department.
Pearl Asian Mining is a shareholder-friendly company demonstrated by this latest action to reduce the amount of shares outstanding by declaring a stock buyback program rather than using the reverse split program. Below is a hypothetical scenario of a shareholder who bought 1,000,000 shares prior to the buyback.
Total amount involved: $100
After buyback, estimated outstanding float 450,000,000 shares
Assuming the market cap is maintained at around $4 Million PPS = 0.009 (approx.)
Shareholders retained shares post-buyback
(1,000,000 x .95 = 950,000) (1,000,000 less 950,000)
50,000
Value of remaining shares (50,000 x 0.009) $ 450
Amount PAIM paid for buyback shares
(950,000 x 0.00002)
$19
Net profit of shareholder should he sell at 0.009 $369
Net profit rate = 369/100 369 % (in a span of about a month)
The above scenario is supported by the stock performance in July 2006 where the market price of PAIM increased to an annual high of $.0065 after the 90% buyback.
The “naked short selling” operations will continue until the SEC Regulations SHO goes into effect and tightened. Therefore, we encourage PAIM shareholders to safeguard your investments by reviewing your portfolio regularly and preventing the use of your shares by others resulting in a short position.
Pearl Asian Mining is not alone in this battle as there are many small cap companies who have suffered, who were victimized and eventually forced to cease operating. We will assure our shareholders that we will do our best and exert all efforts to protect our shareholders from falling prey to becoming a “victim” of the so called “naked short selling” operations. Pearl Asian Mining needs the cooperation of all its shareholders and plans to effect whatever transitions are needed, which may sometimes result in potential “chills” on deposits and/or withdrawals. We advise all our shareholders to stand strong and united against parties engaged in naked short selling of PAIM shares.
“Pearl Asian Mining is a real and viable gold mining company with excellent potential to expand globally. With substantial short selling PAIM may be weakened in the short term, but we can assure you that we will exert all efforts, through firm conviction and faith in God, to maintain Pearl Asian Mining as a viable and going concern. Your investment in our company is very vital and important to us: we care about all our shareholders, regardless of the magnitude of your investment in PAIM,” commented Jason Piamonte, Pearl Asian Mining CEO.
FORWARD STATEMENTS;
Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements in this release include statements regarding the Company's projections regarding gold production in future periods. Factors that could cause actual results to differ materially from anticipated results include risks and uncertainties such as: risks relating to estimates of reserves, mineral deposits and production costs; mining and development risks; the risk of commodity price fluctuations; political and regulatory risks; risks of obtaining required operating permits and other risks and uncertainties. Penny Stocks are very highly speculative and may be unsuitable for all but very aggressive investors. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Pearl Asian Mining Industries Inc. – Philippines
Investor Relations:
Gary Gotanco, MBA, 866-732-7888 (USA)
or 310-728-6907 (P.I.)
Fax: 877-317-4430
IRPAIM@hotmail.com
www.PearlAsianMining.com
Source: Business Wire (July 19, 2007 - 8:28 AM EST)
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