IRVINE, Calif., May 19, 2011 (GLOBE NEWSWIRE) -- Universal Bioenergy Inc. (Pink Sheets:UBRG), a natural and alternative energy company, announced that as part of its plans for expansion, it amended its Articles of Incorporation and increased the Company's authorized shares of common stock from 200,000,000 to 1,000,000,000 shares.
On May 9, 2011, the Company filed a Certificate of Amendment to the Company's Articles of Incorporation with the Nevada Secretary of State. The amendment was approved by a Written Consent of the majority of the voting shareholders, and the Written Consent of the Board of Directors on June 18, 2010. The information regarding the Amendment was fully disclosed in the Company's Form 10Q Reports that were filed for the periods ending June 30, 2010 and September 30, 2010. A complete copy of the Amendment can be read in the Form 8K filed with the SEC on May 19, 2011.
Vince M. Guest, Universal's President, says, "This is a long-term strategic move that we planned last year to expand the Company and benefit our shareholders. Some shareholders may view this action as a potential for dilution and a devaluation of their shares, however we believe there are many valuable benefits to our shareholders. The Board of Directors has no plans to issue all of these shares to the public. The shares will remain within the corporate treasury until we need to use them. Furthermore, the Board does not intend to use them for a reverse stock split."
Solomon Ali, Universal's Senior Vice President, states, "We believe our shareholders could receive many benefits starting with an increase in the stock price, more revenues, earnings, greater market valuation of the Company, millions of dollars in assets and more liquidity. We feel we have the potential to achieve sales of over $173 million this year and it will take a great deal of capital to reach those objectives. This action will enable us grow and expand very quickly through some potentially large mergers and acquisitions that we have been working on for some time, therefore we need to have the shares available to us now and the flexibility to meet those goals. The Company plans to use those shares for acquisitions and needs to be able to respond very quickly to these business opportunities as they become available in the marketplace. Some of these near term projects include the further development of the North Premont field in Texas with Progas Energy, the acquisition of some other very large oil and gas fields, and acquiring interests in gathering and transport pipelines. Some of the acquisition targets are in the $10 to $25 million range and should bring significant profits and asset value to the Company. The shares may also be used for building strategic relationships with other major companies, expanding our product lines and the acquisition of alternative energy patents and technologies. We also anticipate having the approval to be listed on the Frankfort Stock Exchange soon."
About The Company
Universal Bioenergy Inc. is an alternative energy company, and intends to create and market natural and alternative energy sources including natural gas, petroleum, solar, biofuels, wind, synthetic fuels and related energy technology products. It plans to build the company into a prominent player in alternative energy.
The Universal Bioenergy Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=6784
Safe Harbor Statement - There are matters discussed in this media information that are forward looking statements within the meaning of Rule 175 under the Securities Act of 1933 and Rule 3b-6 under the Securities Exchange Act of 1934, and are subject to the safe harbor created by those rules. Such statements are only forecasts and actual events or results may differ materially from those discussed. For a discussion of important factors which could cause actual results to differ from the forward looking statements, refer to Universal Bioenergy Inc.'s most recent annual report and accounts and other SEC filings. The company undertakes no obligation to update publicly, or revise, forward looking statements, whether as a result of new information, future events or otherwise, except to the extent legally required.
CONTACT: Media Relations Solomon Ali 704-837-5705