Citadel EFT

May 08, 2013 09:30 ET

Citadel EFT, Inc. (CDFT) to Issue Convertible Preferred D Stockholders First Cash Dividend; Provides More Details on Share Conversion Process

OCEANSIDE, CA--(Marketwired - May 8, 2013) -  Citadel EFT, Inc.'s (OTCQB: CDFT) CEO, Gary DeRoos, announces that Citadel EFT will issue its first cash dividend to Convertible Preferred 'D' shareholders. Shareholders of record qualify for this dividend which will be payable Monday, October 14, 2013.

The amount of the dividend will be determined, as a cumulative value of the net equity that Citadel EFT will be booking from its consulting services and partial assignments from its purchases and conversions of convertible debt from other issuers, and non- affiliated assignees of the issuer. The size of the dividend will be consistent with the amount of shareholders of this specific class of securities.

Management has sent information to over 115 common shareholders confirming their ownership position who will be receiving the Convertible Preferred 'D' shares.

After the restructuring of the Company's common stock price, Management will seek to immediately effect an increase in its issued capital to meet market capitalization requirements. Upon availability of the increase in authorized common share count, both holders of Convertible Preferred 'C' & 'D' can convert back into the new restructured common shares.

The original common shareholders, who have negative equity values prior to the restructuring, but received these Anti-dilutive Convertible Preferred 'C' &' D' Shares, can now convert back again into common shareholders. A specific amount of securities from all of the shareholders of record will be registered and underwritten, making the process much more manageable for all parties.

The dividend provides our shareholders of record with added value, actions which not only protect the integrity of CDFT's shareholders equity in the open market, but help Citadel EFT meet the minimum qualifications to up list on the NYSE Alternext Exchange (formerly the American Stock Exchange).

Gary DeRoos, CEO, states, "The stock dividends, on a quarterly basis, are also intended to discourage further conversions of the Convertible Preferred Securities in common shares beyond the six month maturity of those aforementioned securities. CDFT is proposing to register more than half of its issued capital, in a registration statement with the US SEC, so that shareholders will be part of the underwriting and 'Secondary Public Offering' (SPO). This presents a significant monetary opportunity to all who have become shareholders of record."

Management will provide more clarification on the amount of the dividend, as the time draws near to quantify those numbers on the Company's balance sheet.

CDFT will ask its shareholders of record to provide account details to receive this future dividend payout to

CDFT cautions that statements made in this press release constitute forward-looking statements, and not guarantees of future performance, and actual results or developments may differ materially from projections in the forward-looking statements. Forward-looking statements are based on estimates and opinions of management at the time the statements are made.

Contact Information

  • Contact:

    Gary DeRoos