Niagara (NASDAQ:NIAG)
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Niagara Corporation Effects Stock Splits to Ensure Retention of
Deregistered Status
NEW YORK, Jan. 3 /PRNewswire-FirstCall/ -- Niagara Corporation (OTC:NIAG.PK)
announced today that at the close of business on December 31, 2004 it completed
a reverse stock split in a ratio of 1-for-200 which was immediately followed by
a forward stock split in a ratio of 200-for-1. These stock splits were
effected in order to ensure that the Company had less than five hundred holders
of record at year-end which, as a result, will allow Niagara to maintain its
deregistered status and avoid the increased burdens associated with operating
as a registered public company. By remaining deregistered, Niagara expects to
save in excess of $2,500,000 initially and a minimum of $750,000 per year going
forward.
Niagara stockholders who owned 200 or more shares immediately prior to the
stock splits continue to own the same number of shares of the Company, and the
combined effect of the reverse/forward stock splits had no effect on their
holdings of Niagara common stock. Niagara stockholders who owned fewer than
200 shares at the time of the stock splits will receive cash in exchange for
their fractional interests in an amount based on the average of the last sales
price of Niagara common stock as reported on the Pink Sheets for the ten
trading days ending December 31, 2004, which was $ 8.47 per share. The Company
will shortly be sending transmittal materials to its stockholders to enable
them to either receive cash for their fractional interests or to exchange their
old share certificates for new share certificates.
The reverse/forward stock splits will ensure that Niagara will continue to
maintain its deregistered status and retain the substantial benefits of
deregistration, including avoiding the substantial costs and burdens of
complying with the Sarbanes-Oxley Act of 2002 and related SEC and Nasdaq rules.
This release contains certain "forward-looking statements" made pursuant to the
"safe-harbor" provisions of the Private Securities Litigation Reform Act of
1995. These statements involve known and unknown risks, uncertainties and
other factors, many of which are beyond the control of the Company, that may
cause the Company's actual results and estimates of cost savings to be
materially different from those expressed or implied by such statements. Such
risks, uncertainties and other factors include those described in the Company's
Annual Report on Form 10-K for the year ended December 31, 2003. The
forward-looking statements made herein are only made as of the date of this
release, and the Company undertakes no obligation to publicly update such
forward-looking statements to reflect subsequent events or circumstances.
DATASOURCE: Niagara Corporation
CONTACT: Michael Scharf, CEO, Niagara Corporation, +1-212-317-1000
Web site: http://www.niag.com/