SALT LAKE CITY, March 12 /PRNewswire-FirstCall/ -- Otix Global, Inc. (Nasdaq: OTIX), announced today that its board of directors has authorized a reverse stock split at a 1-for-5 ratio of its outstanding common stock. The reverse stock split was approved by stockholders at the Company's annual meeting on May 7, 2009, and is expected to be effective on or about March 29, 2010.
As a result of the reverse stock split, every 5 shares of the Company's common stock that are issued will be automatically combined into one issued and outstanding share, with a change in the par value of such shares from $0.001 to $0.005 per share subject to the payout of fractional shares as described below. The Company's common stock, which is expected to begin trading on a split-adjusted basis when markets open on March 29, 2010, will continue to be traded on the Nasdaq Global Market under the symbol "Otix" on a post-split basis.
As of the effective date, the number of shares of Otix common stock outstanding will be approximately 5,571,761.
The Company has retained its transfer agent, American Stock Transfer, to act as exchange agent. American Stock Transfer will manage the exchange of old, pre-reverse stock split shares for new post-split shares. Stockholders of record as of the effective date will receive a letter of transmittal providing instruction for the exchange of their shares as soon as practicable following the reverse stock split. Stockholders who hold their shares in "street name" will be contacted by their banks or brokers with any instructions.No fractional shares will be issued as a result of the reverse stock split. Fractional shares will be cashed out as follows: Any cash due to stockholders in exchange for fractional shares will be paid as follows:
- If a stockholder's shares are held in street name, payment for the fractional shares will be deposited directly into the stockholder's account with the organization holding the stockholder's shares.
- If the stockholder's shares are registered directly in the stockholder's name, payment for the fractional shares will be made by check, sent to the stockholder directly from American Stock Transfer upon receipt of the properly completed and executed transmittal letter and original stock certificates.
- The average closing sales price of our common stock as reported by NASDAQ for the four trading days preceding the effective date of the reverse stock split; by
- The amount of the fractional shares.