SOURCE: Union Equity, Inc.

Union Equity, Inc.

September 22, 2010 18:53 ET

Union Equity, Inc. Completes Capital Restructuring Initiatives

ORLANDO, FL--(Marketwire - September 22, 2010) -  Union Equity, Inc. (PINKSHEETS: UNQT) announced today that the Financial Industry Regulatory Authority ("FINRA") has confirmed Union Equity's 10,000 : 1 reverse stock split (the "Reverse Stock Split"), which was previously approved by its stockholders and announced on September 10, 2010. According to FINRA's confirmation, the Reverse Stock Split became effective today, Wednesday, September 22, 2010 ("Effective Date"). As a result, the Company's trading symbol will be changed from "UNQT" to "UNQTD" for approximately 20 business days after which it will revert to UNQT. As of the Effective Date and as a result of the Reverse Stock Split, management believes that there are approximately 1,511,477 shares issued and outstanding.

All records of the Company's transfer agent, Interwest Transfer Co., Inc. (the "Transfer Agent") will be updated to reflect the change. On the Effective Date, the Transfer Agent will provide instructions to stockholders relating to the issuance of book-entry evidence of ownership giving effect to the reverse stock split and to the issuance of new stock certificates. Shares held as part of the DTC System will be automatically adjusted on the same basis.

The Reverse Stock Split was part of an overall restructuring of Union Equity's capital structure that also included reducing Union Equity's authorized capital stock from twenty billion two-hundred million (20,200,000,000) shares of stock, of which twenty billion (20,000,000,000) shares were designated as common stock and two-hundred million (200,000,000) were designated as preferred stock to nine hundred and fifty million (950,000,000) shares of stock, of which nine hundred million (900,000,000) shares shall be designated as common stock and fifty million (50,000,000) shall be designated as preferred stock. Union Equity's management team views the capital restructuring as a means to position the Company to be more attractive to possible investors as well as acquisition candidates. Union Equity is looking to raise between $10 and $20 million over the next twelve months.

Union Equity inherited its original capital structure from the former officers and directors of the Company. Current management believes that Union Equity's emergent business model is very different from the one that existed through the change in control that occurred in May of 2010.

The Company is an early stage equipment leasing company that will require additional capital in order to sustain and expand within the $171.7 Billion truck transportation industry. In order to free itself from the limitations of operating through limited funds and to expand its fleet, Union Equity plans to secure additional financing through its capital restructuring plan. 

In connection with the restructuring initiatives, the Company also previously announced that its directors have recently completed a 150,000,000 share purchase of common stock. The decision to purchase shares in the open market was based upon their belief that the Company's common shares are substantially undervalued. These purchases have decreased the public float by reducing the number of free-trading shares, which should have a positive effect on the price per share.

"We believe our plan represents a balanced approach to refining the company's capital structure on behalf of our stockholders, while repositioning Union Equity for sustainable growth in core earnings over the long-term," stated Steven Woodell, President of Union Equity, Inc.

About Union Equity, Inc.
Union Equity is a commercial truck leasing business engaged in leasing class 8 commercial trucks to owner operators located around the contiguous 48 states. Many owner operators drive on a for hire basis for Fortune 500 companies, while others have their own authority to haul freight throughout the United States. Union Equity's strategy has been to target both groups of owner operators through an aggressive marketing program and complete "one stop shop" solution for the owner operator. Through their unique business model, Union Equity is able to provide owner operators with a leased truck regardless of their credit history. Owner operators need only to have a valid commercial driver's license, acceptable insurance, proof of a shipper's intent to hire, and a willingness to work.

Safe Harbor Act: This release includes forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 that involves risks and uncertainties including, but not limited to, the impact of competitive products, the ability to meet customer demand, the ability to manage growth, acquisitions of technology, equipment, or human resources, the effect of economic business conditions, and the ability to attract and retain skilled personnel. The Company is not obligated to revise or update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this release.

Contact Information

  • Investor Relations:
    Management Solutions International
    1 407-389-5900