Bevington Allocations, the global leader in tax minimization, asset management and securities servicing, today announced their intent to finalize the acquisition and repurchase of 3 million restricted shares of First American Railways issued in the last few years to overseas investors as part of their annual years end tax minimization program at a price per share of between $.03-$4.00 US Dollars.
Online PR News – 15-December-2009 – – HONG KONG, December 15, 2009 – Bevington Allocations., the global leader in tax minimization, asset management and securities servicing, today announced their intent to finalize the repurchase of 3 million shares of Rule 144 restricted stock of First American Railways issued in the last few years to overseas investors as part of their annual years end tax minimization program.
The company has deposited into escrow with the U.S. Treasury Dept. $136,250,000, which reflects the liquidation value of the restricted stock and $36.25 million of accrued but unpaid dividends.
Related to this repurchase, the company will record an after-tax charge of approximately $197 million in the second quarter of 2010, representing the difference between the amortized cost of the common stock and the repurchase price.
Additionally, the company intends to notify the Treasury that it intends to repurchase, at fair market value, the warrants that were issued to all shareholders to purchase approximately 14.5 million additional shares of the company’s common stock.
All shares of First American Railways were issued as restricted stock whether the certificate was stamped with a "Restricted" legend or not and the restrictions must be removed prior to sale.
Bevington Allocations is a global financial services company focused on helping clients manage and service their financial assets, with representatives in 34 countries and serving more than 100 markets.
The company is a leading provider of financial services for institutions, corporations and high-net-worth individuals, providing superior asset management and wealth management, asset servicing, issuer services, clearing services and treasury services through a worldwide client-focused team. It has $19.5 billion in assets under custody and administration, $81 billion in assets under management, services more than $11 billion in outstanding debt and processes global payments averaging $1.8 million per day.
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The information presented in this press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.
These statements, which may be expressed in a variety of ways, including the use of future or present tense language, relate to, among other things, the Company’s expectations with respect to the after-tax charge and the repurchase of the warrants.
These statements are based upon current beliefs and expectations and are subject to significant risks and uncertainties (some of which are beyond the Company’s control).
Factors that could cause the Company’s results to differ materially can be found in the risk factors set forth in the Company’s Annual Report on Form 10-K for the year ended December 31, 2008, the Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2009 and the Company’s other filings with the Securities and Exchange Commission.