Southern ITS International, Inc. Files Lawsuit to Cancel 89,172,000 Shares of its Common Stock for Failure of Consideration

Rhea-AI Summary

Southern ITS International, Inc. (SITS) has initiated a lawsuit in Clark County, Nevada, to cancel 89,172,000 shares of its common stock, of which 76,500,000 shares were issued to former CEO David McCovy. The lawsuit stems from a 2017 acquisition of McCovy's business, Evolution Enterprises, which was later deemed valueless. Under current management, SITS has found no evidence of assets or services in exchange for the issued shares. The company expects a favorable ruling in court.

Positive

• The lawsuit may lead to the cancellation of a significant number of shares, potentially enhancing shareholder value.

Negative

• The previous management's actions raised concerns about governance and accountability.
• The lawsuit indicates past mismanagement, which may impact investor confidence.

Palm Desert, California, July 19, 2022 (GLOBE NEWSWIRE) -- Southern ITS International, Inc. (OTC Pink: SITS) announced today that it has filed a lawsuit in Clark County Nevada District Court, Case no. A-22-855339-C, seeking cancelation of a total of 89,172,000 shares of its common stock, 76,500,000 shares of which were previously issued to its former CEO, David McCovy, arising out of the acquisition by SITS of Mr. McCovy’s business, Evolution Enterprises, Inc. (“Evolution”) in 2017.  Later in 2017, it was determined that Evolution had no value, and the prior CEO of SITS rescinded the acquisition agreement.  The remaining 12,672,000 shares of SITS common stock were caused to be issued by Mr. McCovy to his associates during the period of time that he served as CEO of SITS.  Under its present management, SITS has found no evidence of any payment of assets (other than the rescinded Evolution acquisition), or services received by SITS in exchange for issuance of the shares of common stock.   The Company expects the Court to rule in its favor.

About Southern ITS International, Inc.

Southern ITS International, Inc. intends to own and/or control a portfolio of highly- successful businesses and will focus on a being a multi-national conglomerate. As a holding company, Southern ITS International is presently in the market to acquire a stake in various companies both public and private. It will also focus on building a direct sales network of various e-commerce internet applications, manufacturing, and internet sales of various products. We will build an experienced management team that will build a diverse portfolio, buying entire companies, or interests therein, involved in technology, oil and gas, manufacturing, real estate, and other sectors, which will then become operating subsidiaries of Southern ITS International. 

Precautionary and Forward-Looking Statement 
                                                          
This release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. "Forward looking statements" describe future expectations, plans, results, or strategies and are generally preceded by words such as "may," "future," "plan" or "planned," "will" or "should," "expected," "anticipates," "draft," "eventually" or "projected." You are cautioned that such statements are subject to a multitude or risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of several factors, and other risks identified in the Company's disclosures or filings with the SEC or OTC Markets, Inc. You are further cautioned that penny stocks and stocks of smaller companies like Southern ITS International, Inc. are inherently volatile and risky, and that no investor should buy this stock unless they can afford the loss of their entire investment.

Contact:  Southern ITS International, Inc.
                Investor Relations
               442-300-6522
                info@sitsintl.com 

Source:  Southern ITS International, Inc.

FAQ

What is the recent lawsuit filed by Southern ITS International (SITS) about?

Southern ITS International has filed a lawsuit to cancel 89,172,000 shares of common stock, primarily issued to former CEO David McCovy, due to the lack of value from a past acquisition.

How many shares is Southern ITS International (SITS) seeking to cancel?

SITS is seeking to cancel a total of 89,172,000 shares of its common stock.

Who were the shares of Southern ITS International (SITS) issued to?

The shares were primarily issued to former CEO David McCovy and his associates during his tenure.

What was the outcome of the acquisition of Evolution Enterprises by SITS?

The acquisition was rescinded as it was determined that Evolution Enterprises had no value.

What does the lawsuit mean for current shareholders of Southern ITS International (SITS)?

If successful, the lawsuit may lead to the cancellation of shares, potentially increasing the value of remaining shares for current shareholders.