RENO, Nev., March 2, 2010 (GLOBE NEWSWIRE) -- Encompass Holdings, Inc. (Pink Sheets:ECMH), www.encompassholdings.com, announced today that it will return 100 million shares of the company's issued and outstanding Class A Common shares to its corporate treasury. This transaction will reduce the current Issued and Outstanding Common Shares to approximately 600 million shares and divide the Authorized Shares into two groups, 749,985,000 Class A (trading and voting) and 15,000 Class B Common (non-trading) shares.
Rotary Engines, Inc. (REI), a major Encompass shareholder and minority shareholder of Rotary Engine Technology, Inc. (RETI), has traded 100 million Class A Common trading shares of Encompass Holdings' stock in exchange for 15,000 Class B Common non-trading "voting only" shares. The Class B Common share as a class will represent 66.67 percent of the voting rights of all issued and outstanding Encompass Class A Common voting shares.
REI had received these shares when it sold its rotary engine proprietary property to RETI, a joint venture with Encompass Holdings, giving Encompass a 51 percent ownership control of RETI and the rotary engine technology.
Larry Cooper, President of REI, stated, "We felt it was in everyone's best interest to convert this large block of trading shares to non-trading "voting only" shares in order to reduce the Encompass issued and outstanding shares while showing our strong support for the current Encompass management.
Scott Webber, CEO of Encompass, commented, "Several members of our current management team came from the rotary engine constituency, myself included. This stock exchange insures our continued commitment to make improvements to the Encompass financial structure and management control for the long-term benefit of our shareholders."
The Encompass Holdings, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=6962
Forward-looking statements in this news release are made under the "Safe Harbor'' provisions of the Private Securities Litigation Reform Act of 1995. Certain important factors could cause results to differ materially from those anticipated by the forward-looking statements, including the impact of changed economic or business conditions, competition, the success of existing and new product releases and other risk factors inherent in product development and other factors discussed from time to time in reports filed by the company with the Securities and Exchange Commission.