TULSA, Okla., June 21 /PRNewswire-FirstCall/ -- Global Power Equipment Group Inc. (Pink Sheets: GLPW) ("Global Power" or the "Company") announced today that its Board of Directors has determined to proceed with a 1-for-9 reverse stock split of all outstanding shares of the Company's common stock. Subject to completion of applicable regulatory steps, the reverse stock split will take effect at the close of business, Eastern Time, on Wednesday, June 30, 2010, and Global Power's common stock will begin trading on Pink Sheets on a split-adjusted basis, and under the temporary trading symbol "GLPW-D," on Thursday, July 1, 2010. The trading symbol will revert to "GLPW" approximately 20 days later.
David L. Keller, Global Power's President and Chief Executive Officer, said: "We are pleased the reverse stock split will become effective soon. This is a key step forward in the process of re-listing our shares on a major exchange." The reverse stock split was authorized by the stockholders of Global Power at the Company's Annual Meeting of Stockholders held on April 22, 2010. It is intended to increase the per share price of the Company's common stock and to thereby allow the Company to list its common stock on NASDAQ. The Company has filed a registration statement with the SEC and an application for the listing of its common stock on NASDAQ. The listing process for NASDAQ will continue for some time after the reverse stock split has been completed.
As a result of the reverse stock split, every nine shares of Global Power common stock will automatically be combined and converted into one share of Global Power common stock. The Company will not issue any fractional shares in connection with the reverse stock split. Instead, stockholders will receive a cash payment (based on the closing sales price of the Company's common stock on June 29, 2010, as reported on the Pink Sheets).
The reverse stock split will reduce the total number of shares of the Company's common stock outstanding from approximately 139.1 million shares to approximately 15.5 million shares. Proportional adjustments will be made to outstanding warrants, equity awards and the number of shares reserved under the Company's equity compensation plans. The reverse stock split will not change either the aggregate number of shares of common stock that the Company is authorized to issue or the par value of each share of the Company's common stock.
Stockholders of the Company will be sent instructions for exchanging their existing stock certificates and for receiving payment for fractional shares. The Company has retained its transfer agent, Computershare Investor Services, to act as exchange agent for the reverse stock split. Computershare may be reached by telephone at (800) 546-5141, or by sending an email message using the online contact form at www.computershare.com.
About Global Power
Oklahoma based Global Power Equipment Group Inc. is a leading design, engineering and manufacturing firm providing a broad array of equipment and services to the global power infrastructure, energy and process industries. Through its Global Power Services Division, the Company is a leading provider of on-site specialty support and outage management services for commercial nuclear reactors in the United States and provides maintenance services to fossil and hydroelectric power plants and other industrial operations. Through its Global Power Products Division, the Company designs, engineers and manufactures a comprehensive portfolio of equipment for gas turbine power plants and power-related equipment for industrial operations, with over 40 years of power generation industry experience. With a strong competitive position in its product lines, the Company benefits from a large installed base of equipment in domestic and international markets. Additional information about Global Power Equipment Group may be found at www.globalpower.com.
Forward-looking Statement Disclaimer
Statements contained in this release regarding the Company's or management's intentions, beliefs, expectations, or predictions for the future, including, but not limited to, those regarding anticipated operating results and the publication of any such results, are forward-looking statements within the meaning of U.S. federal securities laws and are subject to a number of known and unknown risks, assumptions and uncertainties that could cause the Company's actual results to differ materially from those projected, including decreased demand for new gas turbine power plants, the loss of any of our major customers, the cancellation of projects, project cost overruns, including increases in prices for energy or for materials such as steel, and unforeseen schedule delays, competition for the sale of our products or services, poor performance by our subcontractors, warranty and product liability claims and changes in the economic, social and political conditions in the United States and other countries in which we operate, including fluctuations in foreign currency exchange rates and the banking environment and monetary policy. The Company assumes no obligation to update publicly such forward-looking statements, whether as a result of new information, future events or otherwise.
SOURCE Global Power Equipment Group Inc.