Capstone Turbine Announces Reverse Stock Split to be Effective November 6, 2015 at the Close of Market
November 06 2015 - 4:30PM
Capstone Turbine Corporation (www.capstoneturbine.com)
(Nasdaq:CPST), the world's leading clean technology manufacturer of
microturbine energy systems, will effect a 1-for-20 reverse stock
split of the company's issued and outstanding common stock
effective at 4:30 p.m. Eastern Time on November 6, 2015. The
company's common stock will begin trading on a split-adjusted basis
at the open of business on November 9, 2015.
Darren Jamison, President and Chief Executive Officer of
Capstone Turbine, said, "Maintaining our Nasdaq listing is very
important to the company, stockholders, customers and vendors. This
split should enable us to attract larger institutional stockholders
that are often prohibited from buying stocks that are trading at
our recent levels, regardless of liquidity or overall market cap.
In addition, several of our customers and vendors were growing
concerned about our share price, as they were mistakenly equating
share price to overall solvency."
Capstone Turbine's common stock will continue to trade under the
ticker symbol "CPST" after the reverse stock split has been
effected in the marketplace, but the common stock will trade under
a new CUSIP number of 14067D 409.
The Board of Directors believes that a reverse stock split is
desirable to maintain the listing of the company's common stock on
the Nasdaq Capital Market, to improve the marketability and
liquidity of the common stock, and to further facilitate potential
future financings. Stockholders approved the reverse stock split at
Capstone Turbine's Annual Meeting of Stockholders on August 27,
2015.
At the effective time of the 1-for-20 reverse stock split, every
20 shares of issued and outstanding common stock will be converted
into 1 share of issued and outstanding common stock, and the
authorized shares of common stock will remain the same. All
fractional shares of common stock will be rounded up to the nearest
whole share. Immediately after the reverse stock split becomes
effective, Capstone Turbine will have approximately 17.3 million
shares of common stock outstanding.
The company's transfer agent and registrar, Computershare Trust
Company, N.A., will act as its exchange agent for the reverse stock
split. Computershare Trust Company will provide stockholders of
record holding certificates representing pre-split shares of the
company's common stock as of the effective date a letter of
transmittal providing instructions for the exchange of such shares.
Registered stockholders holding pre-split shares of the company's
common stock electronically in book-entry form are not required to
take any action to receive post-split shares. Stockholders owning
shares via a broker or other nominee will have their positions
automatically adjusted to reflect the reverse stock split, subject
to brokers' particular processes, and will not be required to take
any action in connection with the reverse stock split. Stockholders
should direct any questions concerning the reverse stock split to
their broker or Capstone Turbine's transfer agent and registrar,
Computershare Trust Company, N.A. Computershare Trust Company can
be contacted at: (877) 238-6962.
For additional information about the reverse stock split and
related administrative matters, see Capstone Turbine's Current
Report on Form 8-K filed November 6, 2015, available at
www.sec.gov.
About Capstone Turbine Corporation
Capstone Turbine Corporation (www.capstoneturbine.com)
(Nasdaq:CPST) is the world's leading producer of low-emission
microturbine systems, and was the first to market commercially
viable microturbine energy products. Capstone Turbine has shipped
over 8,500 Capstone Microturbine systems to customers worldwide.
These award-winning systems have logged millions of documented
runtime operating hours. Capstone Turbine is a member of the U.S.
Environmental Protection Agency's Combined Heat and Power
Partnership, which is committed to improving the efficiency of the
nation's energy infrastructure and reducing emissions of pollutants
and greenhouse gases. A UL-Certified ISO 9001:2008 and ISO
14001:2004 certified company, Capstone Turbine is headquartered in
the Los Angeles area with sales and/or service centers in the New
York Metro Area, Mexico City, United Kingdom, Shanghai and
Singapore.
"Capstone" and "Capstone MicroTurbine" are registered trademarks
of Capstone Turbine Corporation. All other trademarks mentioned are
the property of their respective owners.
The Capstone Turbine Corporation logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=6212
Forward-Looking Statements
This press release contains "forward-looking statements," as
that term is used in the federal securities laws, about maintaining
our Nasdaq listing and the effects of the reverse stock split.
Forward-looking statements may be identified by words such as
"believes," "expects," "objective," "intend," "targeted," "plan"
and similar phrases. These forward-looking statements are subject
to numerous assumptions, risks and uncertainties described in
Capstone Turbine's Form 10-K, Form 10-Q and other recent filings
with the Securities and Exchange Commission that may cause Capstone
Turbine's actual results to be materially different from any future
results expressed or implied in such statements. These assumptions,
risks and uncertainties include, but are not limited to, the risk
that the reverse stock split may not have the desired effects of
increasing our stock price and causing us to regain compliance with
the applicable Nasdaq listing rules and the risk that the reverse
stock split may decrease the liquidity of our stock. Capstone
Turbine cautions investors not to place undue reliance on these
forward-looking statements, which speak only as of the date of this
press release. Capstone Turbine undertakes no obligation, and
specifically disclaims any obligation, to release any revisions to
any forward-looking statements to reflect events or circumstances
after the date of this press release or to reflect the occurrence
of unanticipated events.
CONTACT: Investor and Investment Media Inquiries:
Capstone Turbine Corporation
Investor and investment media inquiries:
818-407-3628
ir@capstoneturbine.com
INVESTORS:
Dian Griesel Int'l
Cheryl Schneider/Tom Caden
212-825-3210
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