SCOTTSDALE, Ariz., Feb. 4, 2013 (GLOBE NEWSWIRE) -- iGO, Inc. (Nasdaq:IGOI) (the "Company") announced today that it intends to effect a reverse split of its common stock at a ratio of 1-for-12. The reverse stock split, which was approved by the Company's stockholders on January 25, 2013, will take effect at 11:59 p.m. Eastern Time on February 4, 2013. The stock will begin trading on a split-adjusted basis at the opening of markets on February 5, 2013.
As a result of the reverse stock split, every 12 shares of common stock issued and outstanding prior to the opening of trading on February 5, 2013 will be consolidated into one issued and outstanding share. No fractional shares of common stock will be issued as a result of the reverse stock split, and any fractional shares will be paid in cash. Proportional adjustments will be made to the number of shares of iGO, Inc.'s common stock issuable upon exercise or conversion of the Company's outstanding equity awards, as well as the applicable exercise price.
The reverse stock split is intended to increase the per share trading price of the Company's shares of common stock to satisfy the $1.00 minimum bid price requirement for continued listing on the NASDAQ Capital Market.The Company also announced that it has implemented a number of cost-savings initiatives that have resulted in a reduction in its workforce and annual operating expenses. "We believe executing a reverse stock split to help us maintain our Nasdaq listing is in the best interest of our shareholders," said Michael D. Heil, President and Chief Executive Officer of iGO, Inc. "In addition, we believe the cost-savings initiatives announced today will better align our cost structure with our current level of revenue. None of the cost-savings initiatives announced today will have any impact on our efforts to develop an integrated circuit based on iGO Green® technology."