The common stock shares of Advanced Engine Technologies, Inc. (Pink Sheets: AENG) have been reverse split 1-for-20. The announcement was made following the recent approval of the proposed reverse stock split by current shareholders.
“We believe the reverse stock split will facilitate long term growth and increase shareholder value,” said AET Chief Operating Officer, John Luft. “The goal was to provide AET with the treasury stock needed to raise additional capital in the public and private sectors to complete development and subsequent commercialization of the OX2 engine.”
As of the reverse stock split, over 43,000,000 shares or options to purchase shares had been issued out of the 50,000,000 shares authorized by AET’s Articles of Incorporation. This left AET with an insufficient number of treasury shares available to the company to issue so as to raise working capital.
AET shareholders will receive one new share of AET common stock for every twenty shares held with fractional shares being rounded up. The reverse split, which was approved by AET shareholders on July 23, 2010, will reduce the number of shares of outstanding common stock from approximately, 33,885,000 shares as of Nov. 11, 2009, to approximately 1,694,250 shares, based upon a reverse stock split ratio of 1-for-20. Rights to exercise previously granted, but not yet exercised, stock options will also be adjusted based upon the 1-for-20 ratio.
The OX2 is a 4-stroke, 1.1-liter internal combustion engine that weighs 75 percent less than and is half the size of traditional internal combustion engines. It can run on a variety of fossil fuels including gasoline, diesel, natural gas and liquid propane gas. With its expected higher power-to-weight ratio, multi-fuel capacity and anticipated low emissions and fuel efficiency, the OX2 has a practical application in the commercial and industrial generator markets. Additional future applications may include marine, light-duty farm and construction equipment, light aircraft and hybrid electric vehicles.
Inquires by investors or anyone interested in the progress of the OX2 engine can be directed to the company at (310) 914-9599. Additional information is available at www.ox2engine.com.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
This release may contain forward-looking statements involving risks and uncertainties that may cause actual future events or results to differ materially and adversely from those described in the forward-looking statements. Important factors that may cause such a difference for AET include, but are not limited to, whether our engine products are made viable, whether a market for our products develops, our ability to retain key management, our ability to hire and retain the technical personnel necessary to build our products, the availability of funding for future operating requirements, our ability to effectively predict or react to rapid technology changes that could render our products obsolete, product development delays, dependence on suppliers, our potential exposure to product liability and other tort claims if our products fail, our ability to protect our intellectual property, intellectual property disputes and other factors. AET cautions that the foregoing list of important factors is not exclusive. AET disclaims any obligation to revise or update any forward-looking statement that may be made from time to time by or on its behalf.
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