Starnet Communications International, Inc., the online provider of interactive media and information systems has announced a restructuring that separates Starnet's operations in accordance with their business functions. According to a press release, the reorganization is designed to ensure legal compliance and establish a secure platform for rapid growth.
Meldon Ellis, president and CEO of Starnet, said "This plan represents the culmination of several months of consultation by management with key external parties, including financial advisors, legal advisors and relevant government authorities. The restructuring clarifies Starnet's business, eliminating gray areas surrounding issues such as the location and ownership of servers processing online gaming transactions."
Under the initial phase of the plan, Starnet has spun off its online gaming marketing arm into an independent organization, Wiremix (www.wiremix.com). Wiremix, composed of Internet marketing
specialists and led by President Patrick Smyth, will be fully devoted towards promoting the online gaming properties of Starnet and its licensees.
Additionally, Starnet's software development division has been spun off into a wholly owned subsidiary named Inphinity (www.inphinity.com). Jason King will lead Inphinity as CEO while Helmut Biemann replaces King as COO of Starnet International.
Explaining the decision to restructure, Ellis said, "Starnet has taken decisive action to
clarify our business model, eliminate misunderstandings and clearly establish compliance with legal guidelines in jurisdictions where the company operates."
So far, investors have reacted positively. Starnet's stock (OTC-BB: "SNMM") opened at $7 on Thursday, rose throughout the day and continues to rally.