Ampal-American (AMPL) Approves 1-for-20 Reverse Split
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Ampal-American Israel Corporation (Nasdaq: AMPL) announced today that its Board of Directors approved a 1-for-20 reverse stock split (the "Split") of its Class A Stock (the "Stock"). The Split will be effective at 5:00 pm EST on July 20, 2012 and will begin trading on a Split-adjusted basis on July 22, 2012 on the Tel-Aviv Stock Exchange and on July 23, 2012 on the NASDAQ Capital Market. The par value of the Stock after the Split will remain at $1.00 per share and the Stock will continue to be traded on the NASDAQ Capital Market under the symbol "AMPL." Ampal had previously announced that trading would begin on a Split-adjusted basis on July 23, 2012 on both stock exchanges and that the letter "D" would be added by NASDAQ to the symbol for a limited time after the Split.
Upon effectiveness of the Split, every 20 shares of Ampal's issued and outstanding Stock will be automatically converted into one issued and outstanding share of Stock. No cash or fractional shares will be issued in connection with the Split. Ampal will round up to the next whole share in lieu of issuing fractional shares that would have been issued as a result of the Split.
The Split, which was approved by the majority of Ampal's shareholders at the Annual Shareholders' Meeting on May 29, 2012, will reduce the outstanding number of shares of Stock from approximately 56.1 million to approximately 2.8 million. The number of authorized shares of the Stock will not be affected by the Split.
The purpose of the Split is to raise the per share trading price of the Stock to regain compliance with the $1.00 per share minimum bid price requirement for continued listing of the Stock on the NASDAQ Capital Market. As previously disclosed, in order to regain compliance with the minimum bid price requirement, the Stock must have a minimum closing bid price of $1.00 per share for a minimum of 10 consecutive trading days. There can be no assurances that the Split will have the desired effect of raising the closing bid price of the Stock to above $1.00 per share to meet this requirement.
Computershare, Ampal's transfer agent, will be acting as the exchange agent for the Split. Shareholders who hold their shares in brokerage accounts or "street name" are not required to take any action to effect the exchange of their shares. Shareholders who have existing stock certificates will receive instructions from the exchange agent after the Split becomes effective.
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Upon effectiveness of the Split, every 20 shares of Ampal's issued and outstanding Stock will be automatically converted into one issued and outstanding share of Stock. No cash or fractional shares will be issued in connection with the Split. Ampal will round up to the next whole share in lieu of issuing fractional shares that would have been issued as a result of the Split.
The Split, which was approved by the majority of Ampal's shareholders at the Annual Shareholders' Meeting on May 29, 2012, will reduce the outstanding number of shares of Stock from approximately 56.1 million to approximately 2.8 million. The number of authorized shares of the Stock will not be affected by the Split.
The purpose of the Split is to raise the per share trading price of the Stock to regain compliance with the $1.00 per share minimum bid price requirement for continued listing of the Stock on the NASDAQ Capital Market. As previously disclosed, in order to regain compliance with the minimum bid price requirement, the Stock must have a minimum closing bid price of $1.00 per share for a minimum of 10 consecutive trading days. There can be no assurances that the Split will have the desired effect of raising the closing bid price of the Stock to above $1.00 per share to meet this requirement.
Computershare, Ampal's transfer agent, will be acting as the exchange agent for the Split. Shareholders who hold their shares in brokerage accounts or "street name" are not required to take any action to effect the exchange of their shares. Shareholders who have existing stock certificates will receive instructions from the exchange agent after the Split becomes effective.
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