ROCKLIN, Calif.--(Business Wire)--
Avasoft, Inc. (OTCBB:AVAF) purveyor of a patented, innovative
soft-serve ice cream system to the estimated $6 billion combined U.S.
and United Kingdom soft-serve marketplace, today commented on the
recent unusual trading activity in its common stock.
The Company's float of free tradable common stock has been
increased recently from approximately 180,000 shares to 14 million
shares and this is believed to be causing the current volatility in
the market for its common stock. Avasoft notes that its business
update and outlook for profitability in the third quarter of this year
-- as detailed in its March 6 Special Letter to Shareholders --
remains current and solidly on track.
The enactment of revisions to Rule 144, promulgated under the
Securities Act, became effective February 15, 2008 enabling
non-affiliate Avasoft stockholders to sell their shares freely after
six months, subject only to the current public information
requirement, and without restriction after one year.
This Rule 144 change also coincides with the Company's one-year
anniversary as a public company February 13, 2008, upon which many of
approximately 14 million of the Company's 22 million shares issued one
year ago become available for sale in the public market; a quarter of
these shares were issued directly for the Company's merger or
financing over one year ago and have a low or zero cost basis. This 14
million-share float compares with a float of approximately 180,000
shares that were freely tradable prior to mid February.
Avasoft believes this dramatically increased supply of freely
tradable shares has created selling pressure on the market for the
Company's common stock causing unusual volatility. The Company is
consulting with its investor relations firms and investment banker on
solutions to create greater liquidity and restore balance to the
market for its common stock.
About Avasoft, Inc.
Headquartered in Rocklin, California, and through its wholly owned
Ezee Whip Europe, Ltd. subsidiary, Avasoft sells an innovative
soft-serve ice cream system into an estimated $6 billion combined U.S.
and U.K. soft-serve ice cream marketplace. This patented system, for
which it owns marketing rights in Europe and North America, has earned
widespread success in several European markets for the last five
years. Please visit Avasoft online at www.avasoft.com.
For more information
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http://www.b2i.us/irpass.asp?BzID=1493&to=ea&s=0.
Forward Looking Statement
This news release includes forward-looking statements that are
made pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. While these statements are made to
convey to the public the company's progress, business opportunities
and growth prospects, readers are cautioned that such forward-looking
statements represent management's opinion. Whereas management believes
such representations to be true and accurate based on information and
data available to the company at this time, actual results may differ
materially from those described. The company's operations and business
prospects are always subject to risk and uncertainties. Important
factors that may cause actual results to differ include without
limitation: the Company's limited operational experience; ability to
raise financing; market acceptance of the Company's ice cream
products; dependence on suppliers including Schoep's, and in turn,
their suppliers, distributors and providers of raw materials;
dependence on license partners; market prices of raw materials such as
milk, sugar, and other ingredients; continued enforceability of patent
rights; and competition. Many of these risk factors are set forth in
the company's periodic findings with the U.S. Securities and Exchange
Commission.
Avasoft, Inc.
Sheri Hydrick, Public Relations, 916-771-0900
sheri@avasoft.com
or
Capital Market Relations ("CMR")
Chris Rosgen, Investor Relations, 949-481-9739
or
Capital Group Communications, Inc. ("CGC")
Richard Carpenter or George Carpenter, 415-332-7200
avasoft@capitalgc.com
www.capitalgc.com
Copyright Business Wire 2008
