Updates to Shareholders
Galenfeha Retires All Convertible Debt
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Galenfeha Completes Retirement of All Convertible Notes
FORT WORTH, Texas, Nov. 7, 2016 /PRNewswire/ -- Galenfeha, Inc. (GLFH) today announced the termination and extinguishment of all convertible notes the company entered into 1st and 2nd quarters 2016. The company disclosed the final note payoff on Form 8-K, filed with the Securities and Exchange Commission on Friday, November 4.
Since his reinstatement on October 27, 2016, Mr. James Ketner, Galenfeha's Chairman and Chief Executive Officer, has emphasized the importance of extinguishing all convertible notes in order to restore the confidence of Galenfeha's investors and shareholders. He has also indicated that after closing all of the notes, a strategic SG&A cost-cutting initiative is the next priority.
Mr. Ketner commented: "We removed a huge obstacle in front of the shareholders last week; and at the same time, in paraphrasing Mr. Alan Greenspan; we should not get consumed with 'irrational exuberance.' The company is still not out of the woods, and we have real work ahead of us. We are taking whatever steps are necessary to ensure profitability in the near future."
Galenfeha was founded by Mr. Ketner in March 2013 as an Engineering Services/Research and Development company, and is headquartered in Ft. Worth, Texas. In May 2014, the company opened a Manufacturing and Distribution facility in Shreveport, Louisiana, where the company produces "Green" batteries and energy storage products. Galenfeha's stock has been actively traded (GLFH) since September 2014.
In a press release dated October 28, 2016, Mr. Ketner discussed the necessity of outlining a plan of action that reinforces management's commitment to the company and to the shareholders. Part of the plan, once executed, will reduce the dilutive exposure the recent convertible notes had to Galenfeha's common stock.
In closing, Mr. Ketner added: "Within the next two weeks, we will publically announce the process for the upcoming election of the Board of Directors. We will also ask for shareholder approval for the creation of a preferred class of stock. This preferred class of stock will be used to move affiliate stock out of the outstanding common share structure. Rest assured, I understand that simply reducing the common share structure is not an immediate solution to add value to our stock. The way to add value to the common is by earnings, and creating groundbreaking technology."
Full details of the preferred class of stock will be provided to shareholders in advance of a vote on the company By-Laws amendment.