LIMA, Peru, Oct. 9, 2008 (GLOBE NEWSWIRE) -- The Board of Directors of Nilam Resources, Inc. ("the Company") had determined that the number of common shares in the float is far too large given the size of the Company, which has caused our Common Stock being priced at pennies per share. The low share price has hampered the Company's ability to acquire new mineral properties, attract quality management and raise capital to develop our assets. For that reason, the Board of Directors and a majority of our shareholders have approved a one for fifty (1 for 50) reverse stock split to reduce the number of shares of Common Stock outstanding to approximately 1,160,800 shares. The Board of Directors is hopeful that the smaller number of shares outstanding will help the Company to develop an improved trading market and elevate the image of our Company.
The reverse split of our Common Stock will be effective upon the opening of business, Friday, October 10, 2008. The Company's new trading symbol will be "NILA".
The Company will not issue fractional shares as a result of the reverse stock split. If the number of shares held by a stockholder was less than the next higher whole number, the number of shares will be rounded up to the nearest whole number. Given that the value of any fractional share was likely small, the Company believed that this method was preferable to paying cash in lieu of issuing fractional shares.
"We continue to diligently seek for quality mineral properties in South and Central America," said Len DeMelt, Chairman of the Board of Directors. "Our view is that the recent instability in the capital markets will be positive for us, as the price of gold, silver and copper continue to rise."
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: The statements contained herein which are not historical are forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements, including, but not limited to, certain delays beyond the company's control with respect to market acceptance of new technologies or products, delays in testing and evaluation of products, and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission.
While the management is optimistic that the reverse split will ultimately result in an increase in the market price of our Common Stock, there can be no assurance that our Common Stock will trade at a higher price in the future, or that any such increase if it occurs, it will be sustained.