Los Angeles, California, Feb. 24, 2014 (GLOBE NEWSWIRE) -- The Company's Registration Statement on Form S-1, as amended (File No. 333-192804), was declared effective by the Securities and Exchange Commission at 12:00pm Eastern on February 24, 2014. The Company has entered into preliminary discussions with an investor to provide the Company $900,000 as part of the Company's Registration Statement. As part of the Agreement, the Company shall file a Post-Effective Amendment to reduce the number of shares to 1,800,000 and increase the offering price to $0.50 per share. The agreement is expect to be finalized by March 31, 2014 at which point the issuance pice is expected to be $0.50 per share. Until then, no shares shall be issued from the S-1. Joseph Wade commented, "We believe by reducing the authorized share count and reducing the number of shares being offered and increasing the offering price we will have the funds needed to expand our operations in a manner that secures the interests of our current investors and shareholders."
Additionally, the shares issued shall be subject to a lock up agreement and as such shall not become immediately free trading. Currently, the lock up period being discussed is for 6 months and then the shares shall be subject to a leak out Agreement thereby limiting the number of shares available to be resold. Joseph Wade commented, "This agreement will provide the Company with the funds necessary to acquire thoroughbreds capable of running in stakes races. The purse money is significantly higher is stakes and allowance races which should allow us to increase our dividend payments to the shareholders. The lock up agreement provides the Company with the time to increase shareholder value before the shares can be resold. Our intent with this investment and the line of credit is to build out our operations within the next 12-18 months whereby the Company's cash flow from operations will support the Company's continued growth thereby eliminating our need to raise capital through the issuance of common stock."
About Embarr Downs. The Company is engaged in the buying, selling and racing of thoroughbreds. The Company's focus is acquiring thoroughbreds that can race in the allowance and stakes level of thoroughbred racing; however, the Company will initially begin acquiring thoroughbreds in the claiming level of thoroughbred racing. More information can be found at www.embarrdowns.com ; Additional information can be found at www.embarrdowns.com and on our Facebook page https://www.facebook.com/embarrdowns and Twitter at https://twitter.com/EmbarrDowns.
Notice Regarding Forward-Looking Statements in this press release which are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future. Actual results could differ from those projected in any forward-looking statements due to numerous factors. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that any beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that any such beliefs, plans, expectations or intentions will prove to be accurate.
Contacts: Embarr Downs, Inc. Joseph Wade (949) 461-1471 www.embarrdowns.com
Embarr Downs, Inc.
Plano, Texas, UNITED STATES