GNCC Capital, Inc. (OTC: GNCP) (“The Company”) is now in a
position to confirm that it is in the final stages of a long
planned reorganization of the Company.
The Company advises as follows:-
AUTHORIZATION OF SHARES OF SERIES B PREFERRED STOCK
On June 9, 2014, the Company authorized shares of Series B
Preferred Stock. This Preferred Stock will be used to raise funds
for Company activities, including but not limited to the business
of Mining Exploration. A number of the existing outstanding
Convertible Loan Notes as well as Loans to the Company are to be
cancelled and replaced with the shares of Series B Preferred
Stock.
SALE OF “WHITE HILLS” EXPLORATION PROPERTIES TO WHITE HILLS
EXPLORATION, INC.
On June 11, 2013, the Company resolved to sell its entire
rights, title and interest in its “White Hills” Exploration
Properties to White Hills Exploration, Inc., a wholly owned
subsidiary of the Company. This will be settled by the issuance of
shares of White Hills Exploration, Inc. shares of Common Stock to
the Company, in the approximate amount of $10 million.
SALE OF “ESTER BASIN, KIT CARSON, BURNT WELL, CLARA,
SILVERFIELDS AND POTTS MOUNTAIN” EXPLORATION PROPERTIES TO MOHAVE
CONSOLIDATED EXPLORATION, INC.
One June 11, 2014, the Company resolved to sell its entire
rights, title and interest in its “Ester Basin, Kit Carson, Burnt
Well, Clara, Silverfields and Potts Mountain” Exploration
Properties to Mohave Consolidated Exploration, Inc., a wholly owned
subsidiary of the Company currently being incorporated. This will
be settled by the issuance of shares of Mohave Consolidated
Exploration, Inc. shares of Common Stock to the Company, in the
approximate amount of $18 million.
ACQUISITION OF FURTHER MINING EXPLORATION PROPERTIES
The Company confirms that it is to acquire the “Alamo, North
Rawhide and McCracken” Mining Exploration Properties. The Company
will be acquiring these properties through a wholly owned
subsidiary company of the Company, Walker Lane Exploration, Inc.
The full acquisition price of these properties will be through the
issuance of recently authorized shares of Series C Preferred Stock.
No Convertible Loan Notes are be utilized to fund these
acquisitions. The full acquisition costs will be settled by the
issuance of shares of Walker Lane Exploration, Inc. shares of
Common Stock to the Company.
The Company expects to be in a position to file the full details
of these properties and the acquisition agreements very
shortly.
ACQUISITION OF INTERESTS UNRELATED TO MINING EXPLORATION:
The Company is presently in the final stages of completing upon
the acquisition of two companies, neither of which is remotely
related to the business of Mining Exploration. Both are well
managed, well established and profitable. Both of these companies
fit the Company profile of avoiding Industry Sectors which involve
the carrying of Inventory and Accounts Receivables. Neither of
these companies have any significant Capex requirements. One of the
companies operates in Florida and the other is foreign. Both of
these companies operate in different industry sectors from each
other.
These two companies are being acquired through the issuance of
new classes of Preferred Stock and not through the issuance of any
shares of Common Stock and nor through the issuance of any
Convertible Loan Notes.
Upon the successful acquisition of these two Companies, the
Company, as a Group, will be producing revenues, profits and strong
cash flow. It is envisaged at this time, that the Company will
continue to seek acquisitions of a similar nature.
The Company expects to be in a position to file the full details
of these initial two acquisitions on or before the end of the Third
Quarter, being June 30, 2014.
EFFECT UPON COMPANY’S BALANCE SHEET AND ACCOUNTING TREATMENT
Upon the completion of the various transactions as set out in
this Press Release, the Company will have repaired its Balance
Sheet and eliminated substantial amounts of long term liabilities.
The Company will hold the shares in its various subsidiary
companies.
The acquisition of these Companies unrelated to the business of
Mining Exploration, will create a Company that generates revenues,
profits and cash flow.
The repairing of the Company’s Balance Sheet will enable the
Company to meet the requirements of the various Statues in the
State of Delaware that pertain to Stock Repurchase Programs.
The Company will continue its policy of the impairment of its
Mining Exploration Assets but in the Financial Statements of its
Mining Exploration Subsidiary Companies.
It is expected that all of these transactions will be reflected
in the Company’s Financial Statements for the Third Quarter ended
June 30, 2014.
RATIONALE FOR THESE TRANSACTIONS
The company solely as a Mining Exploration Company, which is
subject to volatility in the prices of precious metals, would
continue to seek large amounts of funding to meet its objectives.
The current terms of that funding are not acceptable to the
Company’s Management nor would they best serve the interests of
stockholders.
The Company being repositioned and reorganized as a Holding
Company with interests in Mining Exploration as well as in other
sectors; with the attendant revenues, profits and cash flow; making
it far more attractive to investors, thereby giving the Company the
ability to raise sums of money on more acceptable terms.
VARIOUS OTHER ISSUES
The Board of Directors will still be chaired by Ron Lowenthal.
Ted Blom as a Director will continue to focus exclusively on the
development and potential extraction of value from the Company’s
Mining Exploration Portfolio. It is envisaged that additional
appointments will be made to both the Board of Directors and to the
Advisory Committee upon the successful completion of the
acquisitions of the companies unrelated to the business of Mining
Exploration.
The Company will not be seeking to change its name.
Incoming Management will be ensuring that the Company’s image is
rebranded and will to that end, start with the corporate web site
and will implement the use of social media to better communicate
with stockholders.
NO REVERSE SPLIT OF THE COMPANY’S SHARES OF COMMON STOCK
The Company’s Management confirms that under no circumstances
does the Company intend to reverse split the shares of Common
Stock. The Company’s Management believe that such actions are
contrary to stockholder interests.
THE FILING OF THE SECOND QUARTERLY REPORT
The Company appreciates the fact that the Second Quarterly
Report for the period ended March 31, 2014 is overdue. This is
being completed and all of the various transactions outlined in
this Press Release are being incorporated as subsequent events in
order to ensure a complete understanding of the various financial
effects caused by this reorganization.
The Company will continue to publish various updated reports on
these transactions on the OTC Markets, stockholders are advised to
review these various reports as they are filed. Stockholders will
also be updated accordingly.
About GNCC Capital, Inc.:
GNCC Capital, Inc. is primarily a Gold Exploration Company, with
a secondary focus on Silver Exploration. The initial exploration
properties are located in Arizona and consist of “White Hills,
Esther Basin, Burnt Well, Clara, Kit Carson, Silverfields and Potts
Mountain". The Company intends to create significant value for its
initial portfolio of properties through continued exploration,
joint ventures, and through the acquisition of additional Gold and
Silver Exploration assets. GNCC Capital, Inc. is a Current
Information Filer on the OTC Markets.
Forward-Looking Statements:-
This press release may contain forward-looking statements. The
words "believe," "expect," "should," "intend," "estimate,"
"projects," variations of such words and similar expressions
identify forward-looking statements, but their absence does not
mean that a statement is not a forward-looking statement. These
forward-looking statements are based upon the Company's current
expectations and are subject to a number of risks, uncertainties
and assumptions. The Company undertakes no obligation to update any
forward-looking statements, whether as a result of new information,
future events or otherwise. Among the important factors that could
cause actual results to differ significantly from those expressed
or implied by such forward-looking statements are risks that are
detailed in the Company's filings, which are on file with the OTC
Markets Group.
GNCC Capital, Inc.N.E. “Ted” Blom, 702-951-9793President
& CEOcorporate@gncc-capital.comorInvestor
Relations:investor@gncc-capital.comWeb Site:
www.gncc-capital.comTwitter: https://twitter.com/GNCCCapital[We
would be very appreciative if all investor questions be directed to
this E mail address and not to our telephone voicemail until such
time as we have appointed a dedicated Investors Relations Firm whom
will deal with all telephonic enquiries]
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