Dynatronics Announces Reverse Stock Split
SALT LAKE CITY, Dec. 19, 2012 /PRNewswire/ -- Dynatronics Corporation (Nasdaq: DYNT) today announced that on December 17, 2012, at the Company's annual meeting, the shareholders approved a one-for-five reverse stock split of the Company's common stock. Approximately 93% of the votes cast were in favor of the reverse split which becomes effective today.
"After careful analysis, our board of directors determined that the best course of action for shareholders was to maintain our Nasdaq listing where we have traded for the past 28 years," stated Kelvyn H. Cullimore, Jr., chairman and president of Dynatronics. "Our research showed that staying on Nasdaq provides greater liquidity through higher trading volumes, as well as tighter spreads between bid and ask prices, more market makers and overall better investor confidence compared to trading in the over-the-counter market as a result of being delisted from Nasdaq."
The Company has a number of positive developments which management believes should bode well for the Company's future performance. "This week, we are completing the expansion of our California operation into a new, larger facility in Livermore, CA to better serve our west coast customers," reported Cullimore. "Beginning today, we will be operating from that new facility which will allow greater operating efficiencies than our previous facility. In addition, our new SolarisPlus line of therapy devices is being well received by the market. October was a very profitable month for the Company and should result in earnings for the quarter ended December 31st improving significantly over the same period last year."
The Company is also working on expanding its distribution channels over the coming quarters and will introduce a record number of new products in fiscal year 2013. "We expect these expansion plans and new product introductions to lead us to higher profits in the coming year," he added.
Dynatronics manufactures, markets and distributes advanced-technology medical devices, orthopedic soft goods and supplies, treatment tables and rehabilitation equipment for the physical therapy, sports medicine, chiropractic, podiatry, plastic surgery, dermatology and other related medical, cosmetic and aesthetic markets. More information regarding Dynatronics is available at www.dynatronics.com.
This press release contains forward-looking statements. Those statements include references to the company's expectations and similar statements such as the statement regarding expectations relating to share trading volume, operating efficiencies, future profitability, market acceptance of new products, and future operating results and growth. Actual results may vary from the views expressed in the forward-looking statements contained in this release. The development and sale of the company's products are subject to a number of risks and uncertainties, including, but not limited to, changes in the regulatory environment, competitive factors, inventory risks due to shifts in market demand, market demand for the company's products, availability of financing at cost-effective rates, and the risk factors listed from time to time in the company's SEC reports. The Company expressly disclaims any obligation or intention to update any forward-looking statement contained in this release.
SOURCE Dynatronics Corporation