WILMINGTON, Del., Oct. 12, 2006 (PRIMEZONE) -- Universal Capital Management, Inc. (OTCBB:UCMT), a Business Development Company which provides emerging growth companies with management and strategic resources for successful growth, explains its dividend policy to shareholders.
As a publicly traded Business Development Company under the Investment Company Act of 1940, Universal Capital Management, Inc. ("UCM") under certain rules is able to dividend to its shareholders common stock of its portfolio companies. Therefore, each shareholder has the opportunity of not only owning shares in a diversified portfolio, but also the potential of receiving dividend shares of a particular portfolio company itself.
This policy not only benefits UCM's shareholders, it also benefits the portfolio company. As a new publicly traded entity, the addition of the number of shareholders provided it by UCM assists the portfolio company's liquidity in the marketplace.
Universal Capital Management's first dividend was of Theater Xtreme Entertainment Group Inc. (OTCBB:TXEG) ("Theater"). The shareholders of UCM received approximately 5.5 shares of Theater for every 100 shares of UCM owned. At the time of the distribution, each share of Theater was trading at $1.50 per share.
It is Universal Capital Management's intention to continue this dividend policy where appropriate to help our portfolio companies enter the public markets as well as increase the potential rate of return for Universal Capital Management shareholders.
Please visit the company's web site for additional information at http://www.unicapman.com
Forward-Looking Statements
The information contained in this press release may contain "forward-looking statements." You can identify these statements by use of the words "may," "will," "should," "plans," "explores," "expects," "anticipates," "continue," "estimate," "project," "intend," "believe," and similar expressions. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those projected or anticipated. These risks and uncertainties include, but are not limited to the following which could affect Universal Capital Management, Inc. or one or more portfolio companies: general economic and business conditions, effects of continued geopolitical unrest, competition, changes in technology and methods of marketing, delays in completing various engineering and manufacturing programs, changes in customer order patterns, changes in product mix, continued success in technological advances and delivering technological innovations, shortages in components, production delays due to performance quality issues with outsourced components, and various other factors beyond the Company's control.