The reverse stock split, which was authorized by the company's board and approved by written consent by the holders of approximately 72.1 percent of its outstanding common stock, is expected to begin trading on a split-adjusted basis on April 13, 2006, on the Over the Counter Bulletin Board.
In conjunction with the reverse stock split, the company's board and holders of approximately 72.1 percent of its outstanding common stock also approved the reduction in the number of authorized shares of the company's common stock from 1.5 billion to 100 million.
In the reverse split, each 25 shares of issued and outstanding common stock will be converted automatically into one share of common stock. The number of outstanding shares of common stock will be reduced from approximately 759.6 million as of March 21, 2006, to approximately 30.4 million shares outstanding post-split.
Stockholders who hold their shares in brokerage accounts or "street name" will not be required to take any action to effect the exchange of their shares. Stockholders of record as of April 12, 2006, who hold share certificates will receive instructions from the company's transfer agent explaining the process for obtaining new post-split stock certificates. Mellon Investor Services will act as the exchange agent for purposes of implementing the exchange of stock certificates.
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