BOCA RATON, Fla., June 15, 2017 /PRNewswire/ -- Banyan Rail Services Inc. (OTC: BARA) today filed amendments to its certificate of incorporation changing the name of the company to "MedAmerica Properties Inc." and effectuating a one-for-ten reverse split of the company's outstanding shares of common stock. The name change reflects the company's new strategy of pursuing the acquisition of well-located medical office buildings, particularly in the sunbelt states. The company has applied to trade under the symbol "MAPI" but will continue to trade as "BARA" until a new symbol is assigned.
Pursuant to the reverse stock split, each outstanding share of the company's common stock was automatically exchanged for one-tenth of a share. As a result, each stockholder now owns a reduced number of shares of the company's common stock. The stock split affects all stockholders uniformly and does not affect any stockholder's percentage ownership in the company or the proportionate voting rights and other rights and preferences of the stockholders, except for adjustments that may result from the treatment of fractional shares, which have been rounded to the nearest whole share. There are approximately 1,056,684 shares of common stock issued and outstanding after the stock split. The number of the company's authorized shares of common stock was not affected by the stock split. Stockholders do not need to tender their shares for replacement. The company's transfer agent will send a letter with additional information to stockholders.
The name change and reverse stock split were approved by the board of directors and the holders of a majority of the company's outstanding shares. For more information, please see the company's information statement on Schedule 14C sent to the company's stockholders on May 26, 2017.
Gary O. Marino, the company's chairman of the board, commented, "We believe the reverse stock split rationalizes our capital structure and should lead to a higher per-share trading price." Paul S. Dennis, the company's acting CEO and CFO, added, "Our board and management team is excited about our new strategy of investing in medical office buildings, as reflected by our new name."
About the Company
MedAmerica Properties Inc. is a Delaware corporation pursuing the acquisition and management of well-located medical office buildings with the intention of aggregating multiple properties with strong fundamentals in attractive geographic locations, particularly in the sunbelt states.
Safe Harbor Regarding Forward-Looking Statements
Although we believe that the acquisition and ownership of medical office buildings is fundamentally sound, we cannot assure you that we will be successful in this endeavor or that we can locate, finance and acquire these properties. The stock split may not have any of the desired consequences described above and our stock price will increase in proportion to the split (or at all). The liquidity of our common stock could be affected adversely by the reduced number of shares outstanding after the stock split. Some of the statements that we make in this press release, including statements about our confidence in the company's prospects and strategies are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements other than historical information or statements about our current condition. Forward-looking statements can be identified by the use of terms such as "believes," "contemplates," "expects," "may," "will," "could," "should," "would," or "anticipates," other similar phrases, or the negatives of these terms. We have based the forward-looking statements on our current expectations, estimates and projections about us. We caution you that these statements are not guarantees of future performance and involve risks and uncertainties. We have based many of these forward-looking statements on assumptions about future events that may prove to be inaccurate. Accordingly, our actual outcomes and results may differ materially from what we have expressed or forecast in the forward-looking statements. Any differences could result from a variety of factors, including our ability to (i) continue to successfully raise capital to fund our operations; (ii) successfully find medical office buildings to acquire; (iii) comply with SEC regulations and filing requirements applicable to us as a public company; and (iv) any of our other plans, objectives, expectations and intentions contained in this release that are not historical facts. You should not place undue reliance on our forward-looking statements, which reflect our analysis only as of the date of this release. The risks and uncertainties listed above and other documents that we file with the SEC, including our annual report on Form 10-K, quarterly reports on Form 10-Q, and any current reports on Form 8-K, must be carefully considered by any investor or potential investor in the company. We undertake no obligation to update forward-looking statements, except as required by law.
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SOURCE Banyan Rail Services Inc.