RENO, NV., April 27, 2018 (GLOBE NEWSWIRE) -- On the Move Systems (OTC PINK: OMVS) has been receiving numerous inquiries from shareholders last week related to its preliminary 14C that was filed with the SEC on Tuesday April 24, 2018. As of the date of this press release the Company had 131,404,554 common shares issued and outstanding. As of October 31, 2017 which is 6 months prior to the issuance of this press release, the Company had 125,004,554 common shares issued and outstanding. So over the past 6 months the company issued 6,400,000 additional shares of common stock.
Authorized Common Shares
The Company was and is authorized to issue 480,000,000 common shares which remains unchanged by the 14C filing becoming effective. Prior to the 14C and the reverse split becoming effective the Company was authorized to issue an additional 348,595,446 common shares which is calculated as the difference between the authorized common shares 480,000,000 and the total common shares issued and outstanding 131,404,554 which equals 348,595,446.
The reason that the Company spent time and money to file the 14C to undergo the reverse split and the name change of the company is NOT in order to be able to issue additional common shares, since the company was and is already authorized to issue up to an additional 348,595,446 common shares and in the past 6 months had issued only 6,400,000 shares. This means that in the past 6 months the company issued a total of 6,400,000 out of a possible 348,595,446 or roughly only 1.8% of total authorized common shares that it was authorized to issue.
Reason for 14C Filing
The reason for the reverse split and the name change as mentioned in the 14C is to allow for the possibility that the common share price may trade in the dollars range and no longer in the pennies range so as not to be pooled together with other low priced issuers who may have dubious business models and future prospects. As well the name change which is part of this strategy is being done so that the company’s name would be more in line with the company’s main business activities which is to deliver artificial intelligence based products and services to its clients.
Reverse Split Calculations
The reverse split itself is simply a mathematical calculation with respect to a shareholder’s dollar value holdings and percentage ownership in the company. For example if a shareholder held 100,000 common shares trading at $0.10 for a total value of $10,000 and there is a 100:1 reverse split, then that shareholder would end up with 100,000 shares divided by 100 which gives 1,000 shares and the stock price would be multiplied by 100 so if the closing price was $0.10 the day before the reverse split takes effect, the next morning the common share price would be $0.10 times 100 equals $10 giving the shareholder the same dollar value of 1,000 common shares times $10 or $10,000. As well if the company had 100,000,000 shares outstanding for example then prior to the reverse split the shareholder in this example would retain a 100,000 divided by 100,000,000 or a 0.1% ownership stake in the company and after the reverse split becomes effective, the shareholder would end up with 100,000 divided by 100 or 1,000 shares and total shares outstanding for the company would go from 100,000,000 divided by 100 which equals 1,000,000 so the shareholder in this example would retain 1,000 shares divided by 1,000,000 or a 0.1% ownership stake in the company, the same percentage ownership in the company as before. So the shareholder in this example would be no better or no worse off before the reverse split as compared to after.
Company’s Recent Accomplishments with SCOT
After recently having launched SCOT at the ISC show in Las Vegas earlier this month, the company has received significant interest from both distributors and end users. The company received several awards for new product innovation and has already deployed some SCOTs in the field with more to come all in the time span of a few weeks. The Company expects to sign on new distributors and deployment agreements on an ongoing basis starting in the immediate with the deployments that are already at customers locations.
The company may post important information about its subsidiary RAD on its website at www.Robotic AssistanceDevices.com and through tweets from RAD President and CEO Steve Reinharz (https://twitter.com/SteveReinharz)
For more information on the reverse split and name change please refer to the preliminary 14C filed on www.sec.gov on April 24, 2018.
CAUTIONARY DISCLOSURE ABOUT FORWARD-LOOKING STATEMENTS
This release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Statements in this news release other than statements of historical fact are "forward-looking statements" that are based on current expectations and assumptions. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those expressed or implied by the statements, including, but not limited to, the following: the ability of On the Move Systems to provide for its obligations, to provide working capital needs from operating revenues, to obtain additional financing needed for any future acquisitions, to meet competitive challenges and technological changes, and other risks. On the Move Systems undertakes no duty to update any forward-looking statement(s) and/or to confirm the statement(s) to actual results or changes in On the Move Systems expectations.