TMCnet News
ERF Wireless Updates Requirements for Energy Broadband Stock DividendLEAGUE CITY, TX, Aug 11, 2011 (MARKETWIRE via COMTEX) -- ERF Wireless (OTCBB: ERFWD), a leading provider of enterprise-class wireless broadband products and services, issued an update today regarding the company's recently announced decision to dividend up to 5% of the existing common stock in Energy Broadband, the company's wholly owned oil and gas private subsidiary. In a press release issued June 22, 2011, the company announced that ERF Wireless would dividend shareholders who owned at least 100,000 of ERF Wireless common shares, or preferred stock convertible into 100,000 common shares, as of September 30, 2011. Since ERF Wireless has implemented a reverse stock split subsequent to that announcement, the company has revised the requirements for shareholders to receive the dividend to reflect the terms of the reverse stock split. According to ERF Wireless CEO Dr. H. Dean Cubley, "In light of the reverse stock split, for each 200 shares of ERF Wireless common stock, or preferred stock convertible into 200 common shares, that a shareholder owns as of September 30, 2011, the shareholder will receive one unit of Energy Broadband securities consisting of 100 Energy Broadband common shares, one warrant to purchase 100 shares at a fixed price of $4.00 per share and one warrant to purchase an additional 100 shares at a fixed price of $6.00 per share." Dr. Cubley went on to say, "There seems to be some level of concern and confusion among the ERF Wireless shareholders that this dividend is an indication that ERF Wireless is going to divest itself of Energy Broadband in the future. This is exactly opposite to what is planned. The subject dividend is to reward ERF Wireless shareholders for their continued support as well as to achieve the number of shareholders required to take Energy Broadband public in the future where it will remain as a majority-owned public subsidiary of the public company ERF Wireless. At that point current ERF Wireless shareholders who participate in the tax free dividend will benefit from owning common stock in two public companies with their ERF Wireless common stock benefiting from the performance of both ERF Wireless as well as Energy Broadband. "Now that we've completed our reverse stock split, we'll be focusing our efforts on stabilizing and growing the ERF Wireless market capitalization by growing our overall revenue stream month over month and keeping our shareholders up-to-date on Energy Broadband's continued growth and success in the oil and gas market, as well as the progress being achieved in our other divisions," said Dr. Cubley. For more information regarding the products and services of Energy Broadband including their capabilities in the oil and gas industry, please visit the new Energy Broadband website at www.energybroadband.com. This website includes the coverage in the Eagle Ford Shale region, as well as coverage planned in other oil and gas regions in North America. Potential customers requiring more detailed information or a quotation for product or services should contact the Energy Broadband sales staff at 888-770-7052. Additional information regarding the planned dividend will be provided prior to the dividend date. About ERF Wireless ERF Wireless Inc. is a fully reporting public corporation located in League City, Texas, and is the parent company of Energy Broadband, Inc., ERF Enterprise Network Services, ERF Bundled Wireless Services, ERF Wireless Messaging Services and ERF Network Services. The company specializes in providing wireless and broadband product and service solutions to enterprise, commercial and residential clients on a regional, national and international basis. Its principals have been in the wireless broadband, network integration, triple-play FTTH, IPTV and content delivery business for more than 40 years. For more information, please visit our websites at http://www.erfwireless.com/ and http://www.erfwireless.net/ or call 281-538-2101. (ERFWDG) Forward-looking statements in this release regarding ERF Wireless Inc. and Energy Broadband Inc. are made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that such forward-looking statements involve risks and uncertainties, including, without limitation, continued acceptance of the company's products, increased levels of competition, new products and technological changes, the company's dependence upon third-party suppliers, intellectual property rights, and other risks detailed from time to time in the company's periodic reports filed with the Securities and Exchange Commission. Contact: ERF Wireless Inc. Clareen O'Quinn 281-538-2101 ext. 113 Email Contact: Email Contact SOURCE: ERF Wireless Inc. http://www2.marketwire.com/mw/emailprcntct?id=21443EF498D9C6C0 |