ORLANDO, Fla., April 14, 2004 (PRIMEZONE) -- eMax Corporation (Pink Sheets:EMAX) today announced that in recent weeks EMAX has invested 10,000,000 shares of its capital stock, at $0.25 per share, in its eMax Realty Group subsidiary in addition to continued investment in the merger of its eMax Net, Inc. (EMAXNET) subsidiary and ReDOX Technology Corp (OTCBB:RDOX). Both of these investments serve to significantly improve EMAX shareholder's interest in these subsidiaries. The company notes these ongoing investments have increased its issued and outstanding to 99,052,042 as of this date.
Over recent years EMAX has invested heavily in the development of its EMAXNET and Freedom Entertainment International subsidiaries. In 2003 the company announced its first stock dividend in Freedom which is now being issued by the stock transfer agent divesting EMAX of its interest in Freedom. As the EMAXNET merger nears completion EMAX will soon issue a second stock dividend divesting itself of its interest in EMAXNET leaving the company with a few holdings from its predecessors and its interests in the Realty Group as the remaining assets.
EMAX is now seeking new business and negotiating the development of three new subsidiaries of which one will focus on new technology development, the second will focus on sport and leisure travel and resorts and the third seeks to bring a unique software product to market. While these negotiations are still early in the process, they reflect the focused intent of EMAX to continue positing itself as a holding company specializing in new business development. Going forward, EMAX intends to continue investing in the acquisition and development of unique business opportunities and to bring these companies to the OTCBB and distribute its interests in those companies to its shareholders as it has in the past.
Accordingly, the Board of Directors today announced several key corporate changes at the center of which is their majority approval of a capital restructuring. EMAX will execute a 1 for 14 reverse split of its common stock effective at the close of business Friday, April 30, 2004 in conjunction with a reduction of the authorized to 50 million. These capital changes will result in a more manageable 7,075,146 shares issued and outstanding at an adjusted book value of $3.50 per share (unaudited). Having returned value to shareholders by way of two stock dividends, this restructuring now repositions EMAX to repeat the process in a new cycle of business development and shareholder dividends.
This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, which are intended to be covered by the safe harbors created thereby. Investors are cautioned that all forward-looking statements involve risks and uncertainties.