NEW BOSTON, N.H., Sept. 24, 2021 (GLOBE NEWSWIRE) -- American Films, Inc. (OTC: AMFL) today announced that its Board of Directors unanimously approved a 1:5 reverse stock split. The effective date of the reverse stock split will be determined once it has been processed by the Financial Industry Regulatory Authority ("FINRA").
"We believe that the reverse stock split is an important step for the company and its stockholders to optimize our position as we work to execute strategic initiatives across all fronts," said American Films President and Chief Executive Officer John Carty.
"By implementing a reverse stock split, American Films believes it can realize increased incremental demand for both its common stock and make the shares more attractive to a broader range of potential long-term institutional investors," Carty said.
No fractional shares will be issued in connection with the reverse stock split, according to Carty. Instead, each stockholder holding fractional shares will be entitled to receive, in lieu of such fractional shares, cash in an amount determined based on the closing price of American Films' common stock on the effective date. In addition, Carty said, the reverse stock split will apply to all of the outstanding shares of common stock of American Films and will not affect any stockholder's ownership percentage of shares of the company's common stock, except for minor changes resulting from the payment of cash for fractional shares.
American Films stockholders of record will be receiving information from Worldwide Stock Transfer, LLC, the company's transfer agent, regarding their stock ownership following the reverse stock split and cash in lieu of fractional share payments, if applicable.
American Films owns, develops, and acquires intellectual property, which it seeks to monetize at higher rates through proprietary technology, litigation, and asset digitization. Its unique proprietary processes and technology include FACTERRA, a web-based evidence gathering program that identifies instances of copyright infringement and allows American Films to pursue intellectual property protection litigation on behalf of copyright owners.
American Films also announced today that the company recently filed its most recent financial statements with OTC Markets and is now in full compliance with Regulation 15c-211 of the Securities Exchange Act of 1934 ("Exchange Act.") The Company expects OTC Markets to classify the company as "Current Information" status in the coming days, Carty said. This action ensures all investors interested in transacting in American Film shares will be able to do so through any broker/dealer they choose.
Carty said that going forward, the company expects to maintain a higher level of engagement with the investment community and intends to pursue OTCQB status, the OTC's middle tier for U.S. stocks, consisting mainly of early-stage and developing U.S. and international companies.
Finally, American Films also today reaffirmed its intention to trade its shares on the tZERO ATS, which is expected to occur in the fourth quarter. The tZERO ATS is a leading, regulated alternative trading system for trading digital securities. American Films is pushing back from a previously announced launch date to allow time to complete several investor-friendly actions, including the reverse stock split, as well as to allow time to digitize its shares by tZERO ahead of trading.
"As the first OTC company to cross over to trade on tZERO ATS, and with all of the exciting developments we have planned that will give shareholders more ways to trade, American Films begins a new and revolutionary phase," Carty said.
He added that joining the digital securities world allows American Films to accelerate its growth with asset digitization tools such as security token offerings (STOs) and non-fungible tokens (NFTs).
"In our film projects in particular," Carty said, "the superior functionality available with new, blockchain-based digital technologies will allow American Films to offer unprecedented engagement and perpetual revenue streams around characters and intellectual property in interactive entertainment environments, including the metaverse."
To trade American Films common stock on tZERO ATS, investors and existing shareholders of American Films must have or open an account at tZERO's retail broker-dealer subsidiary, tZERO Markets. For more information on the transfer process, please visit the American Films' website at www.americanfilms.us. The company will retain its existing ticker symbol AMFL on the OTC and tZERO ATS, subject to regulatory approval.
tZERO ATS is operated by tZERO ATS, LLC, a FINRA member broker-dealer subsidiary of tZERO, a leader in blockchain innovation and liquidity for digital securities. The securities that trade on tZERO ATS represent nearly 75% of all digital security value and are responsible for approximately 95% of dollar trading volumes globally.
About American Films, Inc.
American Films Inc. is an owner, developer, and acquirer of intellectual property which the company seeks to monetize at higher rates through its proprietary technology, litigation, and asset digitization. It seeks to create alternative investment participation vehicles that provide necessary funding to appropriate projects while offering reasonable return on investment and mitigation of business risks traditionally encountered in the film industry. American Films identifies media products and film industry professionals receptive to alternative funding and the fair treatment of equity investors. Through its wholly owned subsidiary, FACTERRA LLC, American Films plans to identify instances of copyright infringement and pursue intellectual property protection litigation.
Certain statements contained in this release, including without limitation, statements containing the words "expects," "anticipates," "believes," and words of similar import, constitute "forward looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to various risks and uncertainties that could cause actual future results and events to differ materially from those currently anticipated. Potential investors are cautioned not to place undue reliance on these forward-looking statements.
Digital securities that trade on tZERO ATS are conventional uncertificated securities. Ownership of such securities is reflected on the traditional books and records of regulated market participants. The term "digital" refers to the blockchain technology elements of a security that are intended to enhance investor experience through added transparency.
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Corinna Wilson, Wilson500
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corinnawilson@wilson500.com
