American Electric Auto Announces Common Stock Re-Capitalization
5 April 2000
American Electric Automobile Co. Inc. Announces Common Stock Re-Capitalization
SAN DIEGO--April 4, 2000--American Electric Automobile Co. Inc. (NQB Non-OTC:AEAM), successful developers and manufacturers of Electric Vehicles, zero emission and super low emission vehicles, Tuesday announced that the company's change in capital structure takes effect with the start of trading on April 5, 2000.The re-capitalization has taken the form of a 1-for-3 reverse stock split. The split was approved at a special meeting of shareholders held March 20, 2000, for the purpose of enhancing the shareholder values as the company proceeds with its planned expansion in the coming months and years.
American Electric Automobile Co., through its wholly owned subsidiary, California Electric Automobile, opened its first custom design and engineering showroom in downtown San Diego. The company's electric vehicles are designed using standard automobile bodies with fully functioning air conditioning, heating and a custom-designed electric power and drive train.
Off-the-shelf electric motors are used in combination with a custom proprietary computerized electric drive. These well-equipped automobiles are economically priced in the $17,000 to $22,000 range.
The company has also announced a joint venture automobile being produced for introduction into the lucrative Chinese market. The company's EV has been licensed for use on all roads in China. The Chinese government has recognized the need for Electric Vehicles by mandating the purchase of zero emission vehicles under a five-year program which calls for one in every five, or 20 percent of all vehicles produced in China to be an Electric Vehicle.
Recently, the company's electric vehicles were featured at the San Diego California Financial Fest. Gary G. DeGano, president of American Electric Automobile Co., commented on the company's heightened exposure by stating, "Financial Fest was a positive forum for spotlighting our highly acclaimed, economically priced, environmentally friendly cars while also presenting the ambitious growth strategies of our company.
"We were pleased with the high level of interest shown by potential consumers and investors while viewing our automobiles."
Safe Harbor Statements under the Private Securities Litigation Reform Act of 1995: This announcement contains "forward-looking" statements. The words "anticipate," "look forward to," "believe," "will be," "estimate," "projected," "expected to" and other similar expressions as they relate to the company and its management are intended to identify such forward-looking statements. Although the company and its management believe that the statements contained in this announcement are reasonable, it can give no assurances that such statements will prove correct. Factors that could affect the occurrence of events or results discussed herein include those mentioned in the company's submissions to regulatory agencies.