Alloy's BOD seeks stockholders approval for reverse stock split
18 Oct '05
3 min read
Leading merchandising services provider Alloy Inc announced that its Board Of Directors has authorized the Company to seek stockholder approval for a reverse stock split. The reverse split is contingent on the spinoff of Alloy's dELiAs Inc merchandising and retail business.
While the board currently contemplates effecting a reverse split at a one for four ratio, i.e., every four shares of Alloy, Inc. common stock will be combined into one share of Alloy Inc common stock, stockholder approval is being sought to effect a reverse stock split at a one for two, one for three or one for four ratio, giving the board the flexibility to determine the ultimate split ratio that is in the best interests of the Company and its stockholders.
Company does not intend to issue any fractional shares in connection with the reverse stock split and stockholders holding fractional shares will be entitled to a cash payment equal to the fraction to which such stockholders would otherwise be entitled multiplied by the closing price of the Alloy, Inc. common stock on the last trading day before the reverse split effective date.
Assuming stockholder approval for the reverse stock split is obtained, it is currently anticipated that the reverse stock split would be implemented shortly after the dELiA*s Inc spinoff is completed.
However, even in the event that stockholder approval of the reverse stock split is obtained and the Alloy board authorizes effecting the spinoff, the reverse split will be implemented only at such time the board determines in its discretion that such reverse split is in the best interests of Alloy and its stockholders.