DAYTON, Ohio, June 10, 2016 /PRNewswire/ -- Advant-e Corporation (ADVC) today announced a company action effective June 10, 2016 to implement a 1-for-10,000 reverse stock split with mandatory cash out of fractional shares at $0.50 per share on a pre-split basis followed immediately by a 1,000 for 1 forward stock split.
The Company's Board of Directors and a majority of its shareholders, by written consent in lieu of a special meeting on April 13, 2016, authorized and approved the 1-for-10,000 reverse stock split with mandatory cash out of fractional shares at $0.50 per share on a pre-split basis followed immediately by a 1,000 for 1 forward stock split. The Company has amended its certificate of incorporation accordingly.
As a result of the reverse stock split, every 10,000 shares of the Company's common stock will be exchanged for one (1) common share. For any resulting fractional shares, the Company will make a cash payment at the rate of $0.50 per share on a pre-split basis. The 1,000-for-1 forward stock split will be effective immediately after the reverse stock split wherein every share of common stock resulting from the reverse stock split will be exchanged for 1,000 common shares.
Following the reverse and forward stock split, an estimated 135 shareholders are expected to remain. The cost of purchasing the fractional shares is estimated at approximately $500,000. The fractional share cash payment rate of $0.50 per share approximates the average closing price of the Company's shares for the 30 days prior to this announcement.
Jason K. Wadzinski, Chairman of the Board and Chief Executive Officer, stated, "We are very grateful to all our shareholders, who risked their capital to help us execute our business plan. We trust that this company action will provide small shareholders with liquidity as their shares are converted to cash at $.50 per share, the approximate current market price."
About Advant-e Corporation
Advant-e, via its wholly owned subsidiaries Edict Systems, Inc. and Merkur Group, Inc. is a provider of internet-based hosted Electronic Data Interchange (EDI) and electronic document management software and services. The Company helps businesses automate manual, paper-intensive processes via expanded use of EDI or by integrating directly with ERP/MRP systems.
Additional information about Advant-e Corporation can be found at www.Advant-e.com, www.EdictSystems.com, and www.MerkurGroup.com, or by contacting investor relations at (937) 429-4288. The company's email is firstname.lastname@example.org.
The information in this news release includes certain forward looking statements that are based current expectations that involve a number of significant risks and uncertainties. Advant-e cautions investors not to place undue reliance on forward-looking statements because there can be no assurance that the forward-looking statements will prove to be correct and actual results could differ materially. Factors that could cause results to differ include, but are not limited to, successful performance of internal plans, product development and acceptance, the impact of competitive services and pricing, or general economic risks and uncertainties. Advant-e undertakes no obligation to publicly update forward-looking statements at any time in the future.
Investor Relations: +1-937-429-4288, email@example.com
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SOURCE Advant-e Corporation