VAYK Issues Clerical Correction to Feb 18 News Regarding Shareholder Premium
Rhea-AI Summary
Vaycaychella (VAYK) has issued a correction to its February 18, 2025 news release regarding mathematical errors in calculating share price premiums. The company clarified that its preferred shares' conversion price of $0.005 is 6.25 times higher (not 40 times) than the current share price of $0.0008, and $0.0073 is 9.1 times higher (not 90 times) than $0.0008.
The original news detailed a no-cash acquisition worth $1 million, funded through $500,000 in preferred shares convertible after 24 months or when stock trades above $0.005. VAYK hasn't issued free-tradable shares since May 2022, with only two restricted share issuances since then: 43 million at $0.0073 and 20 million at $0.0008 (locked until July 2026). Additionally, an insider has purchased over 11 million shares since November on the open market.
Positive
- No-cash acquisition of $1M company completed
- No free-tradable shares issued since May 2022
- Insider purchased 11M+ shares since November
- Preferred shares conversion price ($0.005) is 6.25x current share price
- No immediate dilution for current shareholders
Negative
- Company issued correction for mathematical errors in previous PR
- Current share price trading at significant discount ($0.0008)
- 20M restricted shares pending release in July 2026
News Market Reaction
On the day this news was published, VAYK declined 28.57%, reflecting a significant negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
The news release correctly stated that their newly issued preferred shares were issued with a conversion price of
However, due to a clerical error involving an incorrect formula, the news release erroneously claimed that
A similar clerical error occurred when the news release incorrectly stated that
"These clerical errors are regrettable," said Stephanie Anderl, Interim CEO of VAYK. "However, they are very basic mathematical errors, and any reasonable person should be able to recognized them."
"More importantly, whether it was 40 times higher or 6.25 times higher should not have any material impact on any investors' profit or loss at this moment or in the foreseeable future, and therefore should not have any material impact on any investors' decisions," Anderl added.
A corrected full version of the February 18 news release is attached below.
====== Full text of Corrected News Release dated February 18 ========
VAYK Confirms No Dilution Following Recent Acquisition and 11 Million Insider Purchase
(
1. No Dilution Until 24 Months Later & Above
"We completed this no-cash acquisition by issuing to the seller preferred shares with a total face value of
Even when those shares become eligible for conversion, the conversion will be conducted at a fixed price of
"Our common stocks closed at
2. No Free-tradable Shares issued for Almost 3 Years
In fact, VAYK has not issued any free-tradable shares since May 2022, which is almost 3 years ago. The company has only delivered two issuances of restricted shares since then. These include approximately 43 million restricted shares issued at a price of
Anderl emphasized that the company is committed to not issuing any free-tradable shares until its share price rebounds to a "reasonable level".
"We understand that people will have different opinion on what a reasonable level should be," said Anderl. "Let me put it in this way: we believe that it is unreasonable for a company to issue low-cost shares to flood the market, when there are still substantial number of investors who have purchased our shares in the last 3 years are under water."
3. Insider Purchase of Over 11 Million Shares
Additionally, Anderl disclosed that a person who holds insider information has purchased more than 11 million shares on the open market since last November.
"The insider made those purchases because they believed there were no other channels to acquire our common shares at the current price level," elaborate Anderl. "As our disclosure has shown, the company has not issued any low-cost shares in the past three years and will definitely not issue any free-tradable shares at the current market level. Anyone who wants to own shares at the current market price level will have to buy from the open market."
Anderl shares that the insider has expressed their intention to purchase more share on the open market, but has given no indication about the timing and volume of future purchases. Also, since VAYK is not SEC reporting, insider trading will not be disclosed on Form 4 or Form 5 but will be disclosed alternatively.
Disclaimer/Safe Harbor: This news release contains forward-looking statements within the meaning of the Securities Litigation Reform Act. The statements reflect the Company's current views with respect to future events that involve risks and uncertainties. Among others, these risks include the expectation that any of the companies mentioned herein will achieve significant sales, the failure to meet schedule or performance requirements of the companies' contracts, the companies' liquidity position, the companies' ability to obtain new contracts, the emergence of competitors with greater financial resources and the impact of competitive pricing. In the light of these uncertainties, the forward-looking events referred to in this release might not occur.
VAYK Contact:
Contact@Vaycaychella.com
+1 470-804-7144
View original content:https://www.prnewswire.com/news-releases/vayk-issues-clerical-correction-to-feb-18-news-regarding-shareholder-premium-302386302.html
SOURCE Vaycaychella, Inc.
FAQ
What was the mathematical error in VAYK's February 18 news release?
How did VAYK structure the $1 million acquisition announced in February 2025?
When will VAYK's 20 million restricted shares become tradeable?
How many shares has VAYK insider purchased since November 2024?
What is the conversion price for VAYK's newly issued preferred shares?
