NEWPORT BEACH, CA -- (Marketwire) -- 10/17/11 -- Newport Digital Technologies, Inc. (OTCBB: NPDT) (OTCQB: NPDT) today announces a comprehensive restructuring plan that includes seeking shareholder approval to increase its authorized shares in order to raise the capital necessary for the full execution of the Company's business plan. The Company will be holding a meeting of stockholders on December 5, 2011, to request shareholder approval. Shareholders will be notified via mail that they may vote via the Internet for their convenience. If the increase in authorized shares is approved, the Company intends to complete a private placement and a reverse stock split to create a more suitable capital structure.
NPDT CEO Don Danks said, "For the past year our team has worked diligently with limited resources to increase revenues in the digital signage market. We have communicated these plans as well as business developments to our shareholders. In addition to last year's 85% reduction of fixed costs, we further reduced our expenses to enable the Company to continue developing business opportunities with PetCo Park, a major retail marketing firm, become an authorized commercial display dealer, and partner with Convergent Technology to accelerate these projects and develop new channels of business by leveraging Convergent's state-of-the art interactive technology solutions.
"Our team believes it is in the best interest of our shareholders to increase our authorized shares and execute a reverse stock split, which will allow us to create a more normalized capital structure. We will also be able to raise additional capital, while simultaneously lifting our stock price out of the sub-penny category and providing a solid foundation for building shareholder value. If we fail to increase the authorized shares or raise the needed capital, we will be unable to achieve our business goals or realize revenues from business opportunities already in development.
"To emphasize our commitment to NPDT and its shareholders, as well as significantly improve the Company's balance sheet, management has agreed to convert all of the current debt, approximately $1.2 million, into equity at $.005 a share, which is currently approximately a 1000% premium to the current bid. Shareholders should also note that management does not and has not taken any cash compensation. Management is incentivized entirely through equity, and as a result, has our interests aligned with shareholders.
"Although we have faced considerable challenges bringing our technology solutions to market due to limited cash and human resources, it has not stopped management from developing promising opportunities. As previously announced, we have entered into a strategic business agreement with Convergent Holdings to advance our projects with the San Diego Padres PetCo Park as well as accelerate the deployment of retail in-store digital signage networks currently under development. Convergent founder and CEO Brooks Pickering joined as an advisor to provide added design and deployment experience and expertise of the most advanced solutions."
In conclusion, Danks stated, "I recognize that NPDT shareholders are disappointed in the decline of our stock price. However, our comprehensive restructuring plan will allow us to capitalize on the business development opportunities that could lead to significant revenue growth and future earnings. This restructuring is critical and I ask for the support of all shareholders as these moves will provide the resources needed to seize these business opportunities."
Newport Digital Technologies, Inc.
Newport Digital Technologies, Inc. is a technology solutions driven company focused on the fast growing digital signage & LED lighting market. NPDT develops and delivers these technology solutions through strategic collaborations with LG Electronics USA and with global partners in Taiwan, China as well as with U.S. installation partners. NPDT has the ability to develop and install virtually any digital signage or LED lighting solution.
Safe Harbor: This press release contains certain forward-looking statements with respect to NPDT and its business. Statements that are not historical facts are identified as "forward-looking statements." The words "estimate," "project," "intend," "expect," "believe," "plan," and similar expressions, particularly when used in the "future tense," are intended to identify forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. Information on potential risk factors that could affect the Company's business plans and financial results can be found in the Company's reports filed with the Securities and Exchange Commission. The Company assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.
Newport Digital Technologies, Inc. has its headquarters located in Newport Beach, California, with a branch office in Australia. If you would like more information about this press release, please contact Donald Danks at +1.949.230.8323 or email at firstname.lastname@example.org.