NEW YORK, Sept. 6, 2006 (PRIMEZONE) -- Organetix, Inc. (OTCBB:OGTX) today confirmed that the controlling shareholders have agreed to cancel 23,500,000 outstanding shares of the Company's stock. These shares will be cancelled from the control position which is presently held in an agency capacity by Lusierna Asset Management. As a result, the fully diluted share count shall decrease from 86,382,447 shares outstanding to 62,882,447 shares outstanding. These shares may be reissued at a later time in conjunction with a potential acquisition or related financing activities. This cancellation is not a precursor to any specific transaction and should be recognized as both a restructuring instrument and a benefit to current shareholders.
Newly appointed Organetix president Dr. David Hostelley commented that, "New management has chosen to set the precedent of putting the best interests of shareholders as top priority. We felt that this decision to cancel a significant number of shares may enhance the future value of the Company. Management is actively seeking a potential merger or acquisition to restore and create shareholder value on a going forward basis."
On August 23, 2006, the Company announced that Lusierna Asset Management had agreed to serve as an agent for certain purchasers to purchase the control shares of the Company for $422,500. Such transaction has closed in escrow pending certain conditions which are solely under the purchasers' control.
DISCLAIMER
This press release may include certain statements that are not descriptions of historical facts, but 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. These forward-looking statements may include the description of our plans and objectives for future operations, assumptions underlying such plans and objectives, statements regarding benefits of the proposed acquisition and other forward-looking terminology such as "may," "expects," "believes," "anticipates," "intends," "projects" or similar terms, variations of such terms or the negative of such terms. There are a number of risks and uncertainties that could cause actual results to differ materially from the forward-looking statements made herein. Such information is based upon various assumptions made by, and expectations of, our management that were reasonable when made but may prove to be incorrect. All of such assumptions are inherently subject to significant economic and competitive uncertainties and contingencies beyond our control and upon assumptions with respect to the future business decisions which are subject to change. Accordingly, there can be no assurance that actual results will meet expectations and actual results may vary (perhaps materially) from certain of the results anticipated herein.