LOS ANGELES, CA -- (Marketwire) -- 12/03/09 -- New Century Companies, Inc., (OTCBB: NCNC), announced today that the Board of Directors has approved increasing the authorized shares of NCNC from 50 Million (currently) to 250 Million. The reason for increasing the authorized shares is to eliminate future very large non-cash derivative liability expense as was reported in the Company's September 30th quarterly financial statements. Derivative liability expenses are a function of the stock price and a deficiency of authorized shares available.
David Duquette, CEO, New Century Companies, Inc. stated, "We were informed by our new accounting firm that increasing the authorized shares would alleviate the large non-cash derivative liabilities for future quarters." Mr. Duquette further stated, "There are no plans at this time to issue any new shares which would increase the current outstanding shares of approximately 21,000,000 shares, except for future merger candidates as previously announced. It has, and will, continue to be the Board of Directors' policy to minimize shareholder dilution and maximize effectiveness of share issuance for any purpose. The increase in authorized shares requires Shareholder approval and I hope NCNC Shareholders will vote, as did the Board of Directors, to increase the amount of authorized shares."
About New Century Companies, Inc.
New Century Companies, Inc. is a supplier of structural aircraft components and assemblies, as well as a leading re-manufacturer of machine tools. New Century, through its wholly owned subsidiary Precision Aerostructures, specializes in engineering and manufacturing precision details for the aerospace industry that perform reliably in harsh conditions, including high and low temperatures, severe shock and vibration. New Century also is a leading domestic manufacturer of machine tools, primarily vertical boring mills and large lathes such as Vertical Turning Centers (VTC). Precision serves major aircraft builders such as General Electric, Boeing L3 Communications and Eclipse Aerospace. The Company has production facilities in Rancho Cucamonga, CA and Santa Fe Springs, CA.
Forward-looking statement: Except for historical information, this press release contains forward-looking statements, which reflect the Company's current expectation regarding future events. These forward-looking statements involve risks and uncertainties, which may cause actual results to differ materially from those statements. Those risks and uncertainties include, but are not limited to, changing market conditions and other risks detailed from time to time in the Company's ongoing quarterly filings, annual information form, and annual reports. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. In light of these risks, uncertainties and assumptions, the forward-looking events in this press release might not occur.