HOLLYWOOD, Calif., March 16, 2006 (PRIMEZONE) -- GL Energy & Exploration, Inc. (OTCBB:GEEX) announced today that it has completed the acquisition of American Southwest Music Distribution, Inc. pursuant to a voluntary stock exchange between the Company and the stockholders of American. Pursuant to the definitive agreement, the Company issued 22,500,000 shares of its common stock and 23,980 shares of its series A convertible preferred stock to David Michery and Kent Puckett, the owners of American. Messrs. Michery and Puckett are currently officers and directors of the Company, positions they have held since October 2004 in connection with the Company's entering into the Merger Agreement with American in October 2004. The Merger Agreement was never consummated and subsequently terminated.
In addition, the Company's board of directors approved and authorized the submission to stockholders at the next annual or special meeting, an amendment to its certificate of incorporation to provide for the following: (i) a 1-35 reverse split of its outstanding common stock; and (ii) changing its name to "American Southwest Music Distribution." Upon consummation of the reverse split, the Company will have approximately 18,840,000 shares of common stock issued and outstanding. For a complete description of the transaction, please reference the Company's Current Report on Form 8-K filed with the Securities and Exchange Commission on March 14, 2006.
"After much diligent and determined effort on everyone's part, we have completed the stock exchange," stated David Michery, CEO of GL Energy. "As a public entity, American Southwest Music will have access to the capital needed to execute our business plan. With the distribution agreements we have in hand, we anticipate being a major player in the very near future. We are extremely excited about our prospects and enhancing the value of this company for our shareholders."
GL Energy & Exploration, Inc. was incorporated in the state of Delaware in 1998. Previously, the company engaged in the exploration of mining prospects in the western United States. The company is based in Hollywood, CA.
American Southwest Music Distribution, Inc. specializes in the production, marketing and distribution of pre-recorded intellectual property music. The Company plans on expanding its operations by entering into licensing, distribution and recording agreements with musical artists, third party record labels and production companies.
Disclaimer: The Company relies upon the Safe Harbor Laws of 1933, 1934 and 1995 for all public news releases. Statements, which are not historical facts, are forward-looking statements. The company, through its management, makes forward-looking public statements concerning its expected future operations, performance and other developments. Such forward-looking statements are necessarily estimates reflecting the company's best judgment based upon current information and involve a number of risks and uncertainties, and there can be no assurance that other factors will not affect the accuracy of such forward-looking statements. It is impossible to identify all such factors. Factors which could cause actual results to differ materially from those estimated by the company include, but are not limited to, government regulation; managing and maintaining growth; the effect of adverse publicity; litigation; competition; and other factors which may be identified from time to time in the company's public announcements.