HOUSTON, Dec. 19, 2005 (PRIMEZONE) -- Grifco International, Inc. (Pink Sheets:GFCI) and its board of directors have decided to embark on an aggressive initiative to create higher stock price for shareholders. The Board has approved up to 20,000,000 shares. Grifco has committed to buying an initial 1,000,000 (one million) shares of GFCI in the open market. This program will be effective immediately and will continue until the price of the company's stock, in management's opinion, reflects its true value based on a price-to-earnings ratio that would be normal and fair to the industry.
The stock that Grifco purchases on the open market will either be retired or Grifco will hold the purchased shares as treasury stock, and thus have the effect of reducing the float. This strategy will increase the company's earning per share and stockholders value and create a fairly represented stock value.
Grifco reserves the right to increase this buy back program. "We feel that this is a perfect opportunity for our company to purchase our stock back at pennies on the dollar based on the true book value," said Jim Dial, CEO of Grifco International. "We feel supremely confident that this effort will show significant gains in shareholder value. Our objective is to have our stock price properly reflected."
Grifco International is a leading provider of oil and gas services equipment, specializing in the conception, architecture, and development of tools for the coil tubing, wire line, and snubbing industry throughout the United States, China, Mexico, South America, the Middle East and Africa. Grifco's patented products are known and used throughout the world. In addition to our patented tools, Grifco holds and owns design rights and manufacturing facilities for producing more than 6,000 products for the oil and gas industry with more than 150 clients, boasting the biggest names in the business, including Halliburton, Exxon, and Schlumberger. Please visit www.grifco.org
Forward-Looking Statements
Certain statements in this release, and other written or oral statements made by the Company, including the use of the words "expect," "anticipate," "estimate," "project," "forecast," "outlook," "target," "objective," "plan," "goal," "pursue," "on track," and similar expressions, are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause actual results, performance, or achievements of the company to be different from those expressed or implied. The Company assumes no obligation and does not intend to update these forward-looking statements. Among the important factors that could cause actual results to differ materially from those indicated by such forward-looking statements include, without limitation: competitive and general economic conditions, adverse effects of litigation, the timely development and acceptance of our products and services, significant changes in the competitive environment, the failure to generate or the loss of significant numbers of customers, the loss of senior management or increased government regulation.