Yesterday after the markets closed, Signature Devices announced that 277,000,000 shares will be retired to preferred convertible stock. The retirement will reduce the total number of outstanding shares and is anticipated to increase shareholder value.
The CEO of CEO of Signature Devices stated, “It has always been our intention to provide the sort of capital structure that will best help us deliver shareholder value. As such, we wanted to reduce the common outstanding shares on the market. We are also in the process of PCOAB audits in preparation to becoming a fully reporting company and having our company’s stock upgraded. This, coupled with our efforts to become more profitable so that our P/E ratios can support higher stock levels, is part of our plan to build shareholder confidence and value in the company.”
Most of the shares retired will come from the common stock held by the CEO of the company, with the remaining shares coming from others. Wall Street News Alert recommends investors to keep an eye on the stock as it announced that its subsidiary has been granted the right to develop a new Xbox LIVE Arcade game and plans to publish the game in 2008.
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