MISSION VIEJO, Calif., Dec. 12, 2012 (GLOBE NEWSWIRE) -- FITT Highway Products, Inc. (OTCQB:FHWY) (the "Company") filed a Schedule 14C Preliminary Information Statement announcing its intent to implement a one-for-sixty (1:60) reverse stock split in order to meet the business needs of the Company. The Company currently has 93,254,938 shares of common stock and 6,300,000 shares of preferred stock issued and outstanding which will be subject to the reverse stock split while maintaining the number of authorized shares at 150,000,000 common shares and 20,000,000 preferred shares.
Management believes the reverse stock split will increase the market price and liquidity of the Company's common stock and will make the common stock more attractive to a broader range of institutional and other investors. Numerous brokerage houses and institutional investors have internal policies and practices that either prohibit them from investing in low-priced stocks or tend to discourage individual brokers from recommending low-priced stocks to their customers. As stated in the Schedule 14C filing, we believe that the reverse stock split will make our common stock more attractive and provide a more cost effective investment for many investors, which will enhance the liquidity of the common stock and attract future investments.
In July 2012, three energy drink companies received subpoenas from New York's attorney general regarding health concerns with their products. Subpoenas were sent to Monster, PepsiCo and Living Essentials LLC. PepsiCo manufactures AMP energy drink and Living Essentials manufactures 5 Hour Energy - see Attorney General in New York. F.I.T.T. Energy Products, Inc. has asserted that its product line is fundamentally different from those being scrutinized by the New York attorney general, the City of San Francisco and the Food and Drug Administration (FDA). Additional information can be seen at Monster 5-Hour-Energy.
"We firmly believe we are Energy Drink 2.0," said Michael R. Dunn, CEO of the Company and F.I.T.T. Energy. "More effective, safer, and with added health benefits that consumers should indeed want to ingest." We feel the timing is right in 2013 to begin a full scale launch with the F.I.T.T. Energy line of products and ingredients which can be viewed at www.throwafitt.com.
The Company's Board of Directors has approved negotiating a business combination with F.I.T.T. Energy Products, Inc. There is no definitive agreement providing for this merger and in the event the company is unable to secure sufficient financing the merger may not take place. In the meantime, we are pursuing the following:
- Complete the Company's reverse stock split
- Mitigate remaining debt of the Company at approximately $.10 on the dollar or less
- Complete negotiations with F.I.T.T. Energy Products, Inc.
- Obtain a fairness opinion for the anticipated business combination
- Complete the business combination with all appropriate filings
About FITT Highway Products, Inc.
FITT Highway Products, Inc. is a brand management Company. As disclosed in its recent 10-Q filing for the period ended March 31, 2012, the Company entered into an Operating Agreement with FITT to perform a majority of the Company's operating services, including among other things, selling, marketing, producing and distributing 'F.I.T.T. Energy For Life" in exchange for a royalty payment.
The FITT Highway Products Inc. Logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=15944
Forward-Looking Statements
Certain statements made in this announcement may constitute "forward-looking statements" within the meaning of Section 27Aof the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Management cautions that these statements are based on management's current knowledge and expectations and are subject to certain risks and uncertainties, many of which are outside of the control of the Company that could cause actual results and events to differ materially from the statements made herein. For a more detailed discussion of the risks that could affect our operating results, see our filings with the Securities and Exchange Commission, including our annual report on Form 10-K and our subsequently filed quarterly reports on Form 10-Q. The Company's actual results could differ materially from those contained in the forward-looking statements. The Company assumes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.