WARWICK, RI, Oct 07, 2010 (MARKETWIRE via COMTEX) — ICOA, Inc. (PINKSHEETS: ICOA) (www.icoacorp.com) today announced the Company’s Board of Directors has agreed to reduce the issued and outstanding shares by 4.5 billion shares held by related parties.
The reduction will be executed in three phases: Phase I: 1.5 billion shares will be cancelled as soon as practical in the month of October 2010. Phase II: 1.5 billion shares will be cancelled during the month of November 2010. Phase III: 1.5 billion shares will be cancelled in the month of December 2010.
While these shares were restricted for three years, the Company believes this strategic action will provide a long term benefit to existing stakeholders and potentially inspire confidence to future shareholders.
The Company intends to expedite the necessary documentation and conclude the reduction of the issued and outstanding shares, earlier than originally planned.
Regarding the transaction with American Marketing Complex (AMC) announced on October 4th 2010, the Company wishes to clarify that this transaction will record equity of $10 million in ICOA’s Balance Sheet. The numbers of shares (20,000,000) are issued at a price that is $0.50 Cash Equivalent Credits per share (Media etc credits). In the Company’s opinion this is a strong indication of the direction AMC believes the Company is headed. This transaction will strengthen our balance sheet significantly and management believes it was executed in the best interest of its shareholders. These shares are restricted and cannot be traded in the market until released from restriction in accordance with SEC rules: twelve months for non-reporting or six months for reporting companies.
About ICOA ICOA, Inc. (PINKSHEETS: ICOA) is a national provider of wireless and wired broadband Internet networks in high-traffic public locations. ICOA provides design, installation, operation, maintenance and management of WI-FI hot-spot and hot-zone Internet access. Based in Warwick, Rhode Island, ICOA owns or operates broadband access installations in high-traffic locations across 40 states, located in airports, quick-service restaurants, hotels and motels, travel plazas, marinas etc. ICOA networks are compatible with widely-used 802.11x technology and with virtually all Internet service providers. Further information is at www.icoacorp.com.
Safe Harbor: This press release includes forward-looking statements related to theglobe.com, inc. that involve risks and uncertainties, including, but not limited to, risks and uncertainties relating to integration of newly acquired businesses and assets, product delivery, product launch dates, risks relating to the Internet, development and protection of technology, the availability of financing or other capital to fund its plans and operations, the management of growth, market acceptance of our products, our ability to compete successfully against established competitors with greater resources, the uncertainty of future governmental regulation (particularly as it pertains to the Internet), pending litigation and other risks. These forward-looking statements are made in reliance on the “Safe Harbor” provisions of the Private Securities Litigation Reform Act of 1995. For further information about these and other factors that could affect ICOA’s future results and business plans, please see the Company’s filings with the Securities and Exchange Commission, including in particular our Annual Report on Form 10-K for the year ended December 31, 2005, and our Quarterly Report on Form 10-Q for the quarter ended September 30, 2006. Copies of these filings are available online at http://www.sec.gov. Prospective investors are cautioned that forward-looking statements are not guarantees of performance. Actual results may differ materially and adversely from management expectations.