SOURCE: Red Mile Entertainment

February 08, 2007 16:15 ET

Red Mile Entertainment Completes Reverse Stock Split

SAUSALITO, CA -- (MARKET WIRE) -- February 8, 2007 -- Red Mile Entertainment, Inc., a worldwide developer and publisher of interactive entertainment software, today announced that in advance of the planned quotation of its common stock on the OTC Bulletin Board, it has effected a 1-for-3 reverse split of its common stock as approved by its Board of Directors and shareholders representing a majority of its common stock.

As a result of the reverse stock split, each three shares of issued and outstanding common stock as of the close of business on February 8, 2007 has been automatically converted into one share of common stock. The number of shares of Red Mile's common stock issued and outstanding will therefore be reduced from approximately 28,985,219 shares as of February 8, 2007 to approximately 9,661,740 shares post-reverse stock split. The number of shares of common stock subject to outstanding options, warrants, and senior secured convertible debentures issued by the Company will also be reduced proportionately. No fractional shares will be issued in connection with the reverse stock split. Any fractional shares that result from the reverse stock split will be rounded up and exchanged for one whole post-split share.

No additional action on the part of any stockholder will be required in order to effect the reverse stock split. Stockholders will not be required to exchange their certificates representing shares of common stock held prior to the reverse stock split for new certificates representing post-split shares of common stock.

"This reduction in our outstanding shares and our planned stock quotation on the OTC Bulletin Board is part of our strategic plan to establish a strong foundation for growth," stated Chester Aldridge, Chairman and CEO of Red Mile. "Through these actions we hope to improve the company's capital structure, increase shareholder value and expand our access to the capital markets."

This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The forward-looking statements are based on current expectations, estimates and projections made by management. The Company intends for the forward-looking statements to be covered by the safe harbor provisions for forward-looking statements. Words such as "anticipates," "expects," "intends," "plans," "believes," "seeks," "estimates," or variations of such words are intended to identify such forward-looking statements. All statements in this release regarding quotation of the Company's common stock on the OTC Bulletin Board, company growth, increase in shareholder value, expanded access to the capital markets, and publication of "Jackass: The Game" in 2007 are forward-looking statements. The forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those set forth or implied by any forward-looking statements. All forward-looking statements made in this press release are made as of the date hereof, and the Company assumes no obligation to update the forward-looking statements included in this news release whether as a result of new information, future events, or otherwise, other than as required by law. Please refer to the Company's Form 10-KSB and other filings with the United States Securities and Exchange Commission (the "SEC") for additional information regarding risks and uncertainties, including, but not limited to, the risk factors listed from time to time in such SEC reports. Copies of these filings are available through the SEC's electronic data gathering analysis and retrieval system (EDGAR) at

About Red Mile Entertainment, Inc.

Red Mile Entertainment, Inc. is a worldwide developer and publisher of interactive entertainment software that is headquartered in Sausalito, California. Red Mile creates, incubates and licenses premier intellectual properties and develops products for console video game systems, personal computers and other interactive entertainment platforms. Red Mile has published a number of innovative titles. In 2005, Red Mile successfully launched its first franchise game, "Heroes of the Pacific," for multiple platforms including the PlayStation®2 computer entertainment system, Xbox® video game system from Microsoft and the PC. The popular game is also being developed for the PSP® portable entertainment system, and a sequel to the game is being developed for the next generation of consoles and PC platforms. Red Mile's most highly anticipated title, "Jackass: The Game," which is based on the extremely successful MTV series, is expected to be published in 2007.

For more information about Red Mile Entertainment, Inc., contact Todd Weimer at (415) 339-4242, or Jennifer Jarman of The Blueshirt Group at (415) 217-5866, and please visit our web site at

©Red Mile Entertainment, Inc. All rights reserved. Red Mile Entertainment and the Red Mile Entertainment logo are trademarks of Red Mile Entertainment, Inc.

Contact Information

  • Contact:
    Todd Weimer
    (415) 339-4242


    Jennifer Jarman
    The Blueshirt Group
    (415) 217-5866