SAN DIEGO, Calif., May 29 /PRNewswire-FirstCall/ -- Axia Group, Inc. (OTC Pinksheets: AXGO), announced today that its plan to distribute a dividend to shareholders of Axia in the form of restricted common stock in MotorSports Emporium (OTCBB: MSEM). On May 2, 2007, Axia sold its subsidiary of the company, International Building Technologies, to MotorSports Emporium Inc. for $1.0 million cash and 20 million shares of restricted common stocks of MSEM.
Management will distribute approximately SIXTEEN MILLION (16,000,000) SHARES OF MSEM as dividend on a pro rata basis to shareholders in Axia. The estimated 16 million shares of restricted common stock of MSEM will be issued to the Axia shareholder of record date for the dividend has been set as the close of market on Friday June 8, 2007. AXIA Shareholders of record on this date will each receive 40 shares of restricted common stock of MSEM for each share of stock he or she holds in Axia. Shareholders can buy stock between now and June 5, 2007 and those purchases will apply to the calculation of how much MSEM stock a shareholder receives. Axia stock purchases made after that date will not apply. The remaining 4 million shares will be held back in case of any disputes, errors or other issues.
Axia Shareholders should receive the new MSEM common stock certificates or credited to your brokerage account on or before July 31, 2007. The stock in MSEM will be restricted stock, as per Rule 144 of the Securities and Exchange Commission, which means it cannot be traded for a period of two years from the record date unless the stock is registered by MSEM. At this time, MSEM has not stated any intention to register this stock.
Axia shareholders do not have to surrender their AXGO stock or pay for dividend. All costs, including the distribution of certificates, will be done at the cost of the company; shareholders will not have any costs to pay for this dividend. However, shareholders should be aware there may be individual tax consequences as a result of receiving these shares and should seek guidance from tax authorities.
More information on Axia Group, Inc. can be found on the company web site at http://www.axiagroup.info/.
Investors are cautioned that certain statements contained in this document as well as some statements in periodic press releases and some oral statements of AXGO officials are "Forward-Looking Statements" within the meaning of the Private Securities Litigation Reform Act of 1995 (the "Act"). Forward-looking statements include statements which are predictive in nature, which depend upon or refer to future events or conditions, which include words such as "believes," "anticipates," "intends," "plans," "expects," and similar expressions. In addition, any statements concerning future financial performance (including future revenues, earnings or growth rates), ongoing business strategies or prospects, and possible future AXGO actions, which may be provided by management, are also forward-looking statements as defined by the Act. Forward-looking statements involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance or achievements of the Company to materially differ from any future results, performance, or achievements expressed or implied by such forward-looking statements and to vary significantly from reporting period to reporting period. Although management believes that the assumptions made and expectations reflected in the forward-looking statements are reasonable, there is no assurance that the underlying assumptions will, in fact, prove to be correct or that actual future results will not be different from the expectations expressed in this report. These statements are not guarantees of future performance and AXGO has no specific intention to update these statements.
