BOULDER, Colo., July 23, 2002 (PRIMEZONE) -- Arete Industries, Inc. (OTCBB:ARET) (f/k/a OTCBB:AREE) announced today that the Company held its 2002 Annual Stockholders Meeting on July 2, 2002 and continued the vote tally through midnight, July 15, 2002. Thomas Raabe, CEO and Chairman, stated that the shareholders had overwhelmingly approved each of management's proposals including a floor proposal brought up at the meeting to amend the Company's articles and by-laws, if necessary, to conform to the new BBX Exchange listing requirements. The new board of directors held their annual meeting after the shareholders' meeting to implement these measures to move the Company forward, on an immediate basis.
Mr. Raabe welcomed the two new directors, Mr. Gerald J. Brandimarte and Mr. William W. Stewart to the board. Mr. Raabe stated that these individuals bring much needed new energy, enthusiasm and resources to the Company. The Company has partially completed a small private placement and has begun to make headway in settling over $1,000,000 of its debt consisting of accrued salaries, and loans from affiliates and others. "The Company will now move forward with its plans to locate and pursue acquisition and funding opportunities and will reconfigure itself as a public Business Development Company to provide capital and management resources to emerging growth companies," Raabe stated.
The Company also announced that it will soon replace its corporate informational website to bring important company information current and to update the public on its progress. "The management team is resolved to put the Company's vision into effect and has committed to work on a performance basis, deferring their salaries for the foreseeable future," Raabe concluded.
The Company has implemented a 20 to 1 reverse stock split effective July 15, 2002, enacted on the OTCBB July 23, 2002 under its new trading symbol. The Company is not recalling its certificates and there will be no fractional shares nor payment distributed for eliminated shares. Fractional Shares will be eliminated, and there will be no outgoing notifications or recalls of certificates made by the Company to its shareholders.