Globalgroup Investment Holdings, Inc. (OTC PINK: GIHI) announced today that its Board of directors has authorized the spin-off of its subsidiary Sovereign Oil, Inc. The spin-off is to occur on or before the end of Q3.
Under the terms of the divestiture and related spin-off GIHI.PK shareholders will receive 1 share of Sovereign Oil, Inc. for each 10 shares of Globalgroup Investment Holdings, Inc. held on the effective date of the divestiture. This stock dividend will be issued to GIHI.PK shareholders of record within 30 days of the completion of the spin-off.
Sovereign Oil, Inc. will continue its emphasis on oil and gas exploration, drilling, and secondary well completion. A new board of directors and new officers will be announced upon completion of the spin-off.
About Globalgroup Investment Holdings, Inc.
Globalgroup provides marketing and distribution of its Chit Chat(TM) prepaid Mobile phones in the Dallas Metroplex and also develops technology solutions such as GlobalLOK(TM) that address the computer payment collection challenges associated with rent to own, pay as you go and no-credit-check computer markets. GIHI plans to grow through mergers and acquisitions in its core markets. Sovereign Oil, a wholly owned subsidiary, has its emphasis on oil and gas exploration, drilling, secondary recovery and well completion.
Notice Regarding Forward-Looking Statements: This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The words or phrases "would be," "would allow," "intends to", "will likely result," "are expected to," "will continue," "anticipate," "expect," "estimate," "project," "indicate," "could," "potentially," "should," "believe," "considers," or similar expressions are intended to identify "forward-looking statements." Actual results could differ materially from those projected in the forward-looking statements as a result of a number of risks and uncertainties. These include the company's historic lack of profitability, end user customer acceptance and actual demand, which may differ significantly from expectations, the need for the company to manage its growth, the need to raise funds for operations and other risks within the regulation of the industry. Statements made herein are as of the date of this press release and should not be relied upon as of any subsequent date. The Company's past performance is not necessarily indicative of its future performance. The Company does not undertake, and the Company specifically disclaims any obligation, to update any forward-looking statements to reflect occurrences, developments, events or circumstances after the date of such statement.
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Globalgroup Investment Holdings, Inc.
SOURCE: Globalgroup Investment Holdings, Inc.