Smith Micro Software (SMSI) Plans 1-for-4 Reverse Stock Split
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Smith Micro Software, Inc. (NASDAQ: SMSI) today announced that its Board of Directors has approved a 1-for-4 reverse split of its common stock. The reverse split will become effective prior to the start of trading on Wednesday, August 17, 2016, and the common stock will begin trading on a split-adjusted basis on August 17, 2016 on the Nasdaq Capital Market.
The Company's stockholders, at a special meeting of stockholders held on August 15, 2016, approved the reverse stock split. The reverse stock split is being implemented to maintain the Company's listing on the Nasdaq Capital Market, which requires that the Company maintain a minimum bid price for its common stock of at least $1.00. However, there can be no assurance that the reverse stock split will have the desired effect of maintaining a minimum bid for the common stock above this price.
"The reverse stock split is intended to satisfy the Nasdaq minimum share price requirement and does not have any impact on Smith Micro's operations," said William W. Smith, Jr., President and CEO of Smith Micro. "We continue to have confidence in our business case, and in the long term prospects of our company."
The reverse stock split will reduce the number of outstanding shares of common stock from approximately 49.3 million to approximately 12.3 million. The number of authorized shares of the Company common stock will remain unchanged.
Stockholders who hold existing stock certificates will receive written instructions by mail from the Company's transfer agent, Computershare. Stockholders who hold their shares in brokerage accounts or "street name" are not required to take any action to effect the exchange of their shares. Such stockholders will be contacted by their brokers with instructions. To the extent the reverse stock split would result in a stockholder owing a fractional share, such stockholder will receive a cash payment and the fractional share will be canceled.
Additional information regarding the reverse stock split is available in the definitive proxy statement filed by the Company with the U.S. Securities and Exchange Commission on July 15, 2016.
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