Nexia Holdings, Inc. announced that it has signed an agreement with AmeriResource Technologies, Inc. (ARIO.PK) to exchange 100,000 shares of its Series C Preferred Stock, with a stated conversion value of $500,000, for $500,000 of ARIO preferred stock. The transaction is anticipated to take place in the next 7-10 days. Nexia also told investors that it anticipates agreeing to similar exchanges in the coming months.
CEO Richard Surber stated, “I am involved in discussions with up to six other entities that are interested in carrying out similar exchanges with Nexia. Such exchanges will broaden the portfolio of companies in which Nexia holds an interest. My goal is to use Preferred shares in Nexia, in lieu of cash, to create a diversified portfolio of high risk securities with a face value that could exceed $20M in the coming months.”
Mr. Delmar Janovec, CEO of ARIO, commented, “Stock swaps are relatively simple transactions to complete which require nominal cash outlays to effect. Stock swaps are a way to create a source of liquidity in 6 to 12 months from the date each transaction is closed. ARIO intends to rely on the recently modified Rule 144, set forth by the Securities and Exchange Commission, as a means to help finance its operations and improve its financial position.”
Mr. Surber added, “I have assisted or affected many similar stock exchanges in the past and have seen companies convert their holdings into millions of dollars. In fact, a similar exchange is what initially financed Nexia Holdings when I first became president back in 1998. There are many great opportunities in the penny stock arena and I intend to seize them for the benefit of Nexia.”
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