SAN JOSE, Calif., April 3, 2017 /PRNewswire/ -- Quantum Corp. (NYSE: QTM) today announced that its board of directors has approved a 1-for-8 reverse stock split of its common stock. The company expects the reverse split to become effective following the close of trading on April 18, 2017, and its common stock to begin trading on a split-adjusted basis on April 19, 2017. Quantum's common stock will continue to trade on the New York Stock Exchange under the symbol "QTM" but under new CUSIP number 747906501.
When the reverse stock split becomes effective, every eight shares of issued and outstanding Quantum common stock will be combined into one issued and outstanding share of common stock with no change in par value per share. The reverse stock split will reduce the number of shares of the company's outstanding common stock from approximately 273 million shares to approximately 34 million shares. No fractional shares will be issued as a result of the reverse stock split, and shareholders who otherwise would be entitled to a fractional share will receive a cash payment. Proportionate adjustments will be made to the per share exercise price and the number of shares issuable upon the exercise or vesting of Quantum's outstanding stock options and restricted stock units.
Additional information on the treatment of fractional shares and other effects of the reverse stock split can be found in Quantum's definitive proxy statement filed with the Securities and Exchange Commission on March 6, 2017.
Shareholders with certificated shares will soon receive a letter of transmittal from Quantum's transfer agent with instructions on how to surrender certificates representing pre-split shares. Shareholders should not send in their old stock certificates until they receive a letter of transmittal from the transfer agent. Shareholders with book-entry shares or who hold their shares in "street name" through a bank, broker or other nominee will not need to take any action.
Quantum is a leading expert in scale-out tiered storage, archive and data protection, providing solutions for capturing, sharing and preserving digital assets over the entire data lifecycle. From small businesses to major enterprises, more than 100,000 customers have trusted Quantum to address their most demanding data workflow challenges. Quantum's end-to-end, tiered storage foundation enables customers to maximize the value of their data by making it accessible whenever and wherever needed, retaining it indefinitely and reducing total cost and complexity. See how at www.quantum.com/customerstories.
Quantum and the Quantum logo are either registered trademarks or trademarks of Quantum Corporation and its affiliates in the United States and/or other countries. All other trademarks are the property of their respective owners.
"Safe Harbor" Statement: This press release contains "forward-looking" statements. All statements other than statements of historical fact are statements that could be deemed forward-looking statements. Quantum advises caution in reliance on forward-looking statements. Forward-looking statements include, without limitation, the Company's expectations, beliefs and intentions with respect to the reverse stock split, including the expected effective date and the first date of trading on a split-adjusted basis. All forward-looking statements are based on information available to Quantum on the date hereof. These statements involve known and unknown risks, uncertainties and other factors that may cause Quantum's actual results to differ materially from those implied by the forward-looking statement, including fluctuations in the Company's trading price or unexpected changes in the Company's business. More detailed information about these risk factors, and additional risk factors, are set forth in Quantum's periodic filings with the Securities and Exchange Commission, including, but not limited to, those risks and uncertainties listed in the section entitled "Risk Factors," in Quantum's Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on February 2, 2017. Quantum expressly disclaims any obligation to update or alter its forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.
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SOURCE Quantum Corp.