LONGWOOD, Fla., July 8, 2008 (PRIME NEWSWIRE) -- AFA Music Group, Ltd. (Pink Sheets:AFAO) is pleased to announce that the Company's Board of Directors has approved an offer to exchange Company Common Stock for shares of the Company's Series A Convertible Preferred Stock. For each one thousand shares of the Company's Common Stock tendered in the exchange, shareholders will receive one share of the Company's newly created Series A Preferred Stock, valued at $1.00 per share. The company will be completing the exchange based upon the common stock value of $0.001 per share.
A shareholder must tender at least 1,000,000 shares of Common Stock to qualify to take part in this exchange offer. The deadline for accepting the exchange offer and delivery of certificates to the Company is by the close of business on August 8, 2008. No conversion of Series A Preferred Stock to Common Stock can occur until after a holding period of three months of the date of the new certificate. Thereafter, shareholders may convert the Series A Preferred Stock into Common Stock.
After the holding period, the number of shares of Common Stock to be received upon conversion will be based on the value of the Common Stock at the time of conversion. That value will be based on the average closing bid price of the Common Stock for each of the ten consecutive trading days immediately prior to the date of conversion.
"The Board has agreed that our current share price is not representative of its true value, and should be trading at higher levels. The Company has undergone several significant changes with the acquisition of 3DEye Solutions. This exchange program will reduce our float and is the first step in restructuring the Company's common shares. We agree that a share exchange program is in the best interests of AFAO and its shareholders," stated Marc Jablon, Chairman of AFA Music Group Ltd.
To view the full terms of the Preferred Share Exchange offer, please visit the following link: www.afamusicltd.com.
AFA Music Group recently completed the acquisition of 3D Eye Solutions, a developer of "auto-stereoscopic" three dimensional projection technologies for the film, television and video game industries. 3D Eye Solutions delivers a 3D experience without 3D glasses, and the process simulates true natural depth that appears to project off the screen. The Company will market its innovative technologies to major film, television and video game production companies.
For more information on 3D Eye Solutions, LLC, please visit their website at www.3deyesolutions.com.
Safe Harbor: Statements regarding financial matters in this press release other than historical facts are "forward-looking statements" within the meaning of section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and as that term is defined in the Private Securities Litigation Reform Act of 1995. The Company intends that such statements about the Company's future expectations, including future revenues and earnings, technology efficacy and all other forward-looking statements be subject to the safe harbors created thereby. The Company is a development stage company who continues to be dependent upon outside capital to sustain its existence. Since these statements (future operational results and sales) involve risks and uncertainties and are subject to change at any time, the Company's actual results may differ materially from expected results.