In order to take the advantage of the volatile market conditions, Axiom Corp (OTCMKTS:AXMM) has decided to retire 30 million common shares. The announcement was made public by one of the company’s spokesmen.
Insights On Matter:
Reports claim that the board of directors of Axiom gave approval to this transaction after a long discussion. Scott MacRae, President Axiom led the meeting of BODs and decided to retire 30 million common shares. In return for this cancellation, 3 million new preferred shares with multiple voting features have been issued.
Management of the company thinks that this transaction will not only help Axiom advance further, but also earns the confidence of its shareholders. Tyler Pearson, Chief Executive Officer, Axiom Corp (OTCMKTS:AXMM) states that it has been done to improve the financial position of the company. According to him, the reduced number of outstanding shares will strengthen the share structure of the company with a multi-voting preferred class.
The company has improved its balance-sheet structure significantly in order to make sure that it can take the best advantage of any future opportunity. In a competitive market like todays, there are numerous merger and acquisition opportunities available. With the increased financial strength, the company will be able to exercise these opportunities without any hassle.
The board of directors of Axiom has approved the execution of this transaction. Reports claim that no mandatory term and condition has been levied. Even though the final date has not been disclosed, but the management of Axiom predicts that cancellation of these shares will be finalized in a few days time.
Reporters tried to get in touch with someone from Axiom to know his opinion about the replacement of 30 million outstanding shares with the 3 million new preferred shares and how will they affect, in the long run. Nobody other than the CEO of the company came ahead and spoke about this decision.