Capstone Companies, Inc. Announces Effective Date of 1:15 Reverse Stock Split and Up-listing Plan to OTCQB Venture Market
July 21 2016 - 4:15PM
Capstone Companies, Inc. (OTC:CAPC) (“Capstone” or the “Company”),
a designer of innovative LED lighting solutions including power
failure lighting, today announced the effective date of the
previously announced 1-for-15 reverse split of common stock.
The Company has also announced that it plans to list its common
stock on the OTCQB Venture Market Exchange, effective August 22,
2016.
Stewart Wallach, Capstone’s President and CEO commented, “These
are important steps in our strategy to broaden our exposure to the
investing community and enable us to communicate our promising
growth trajectory and strengthening financial performance to a
larger audience. With the reverse stock split our expanding
earnings will be significantly more obvious on a per share basis.
We believe this will result in greater interest in our
exciting story.
“By up-listing from the OTC Pink and onto the OTCQB Venture
Market, investors can have confidence in Capstone because we must
meet the strict listing standards of the OTCQB. We believe that the
reverse split and subsequent up-listing will ultimately draw more
eyes to our strong fundamentals and prospects for top- and
bottom-line growth.”
The previously announced 1-for-15 reverse stock split will
become effective at the opening of trading on Monday, July 25,
2016, when its common stock will begin trading on a post-split
basis. The reverse split will reduce the number of Capstone’s
common shares outstanding from 722.0 million shares to 48.1 million
shares, and the share price as of the closing of trading on Friday,
July 22, 2016 will be proportionally adjusted upwards.
Market capitalization does not change as a result of this
reverse split. On the effective date of the reverse split, every 15
shares of issued and outstanding common stock will be converted
into one new share of common stock, which will be assigned a new
CUSIP. Capstone will retain its ticker symbol, “CAPC.”
Fractional shares resulting from the reverse split will be rounded
up to the nearest whole share. Shares of Capstone’s common
stock will trade with a “D” appended to its ticker for 20 trading
days following the split to signify that the split has
occurred.
Capstone has received approval from the OTC Markets, pending the
receipt of listing fees, for its common stock to be up-listed to
the OTCQB Venture Market exchange. A critical requirement for
approval to be listed on the OTCQB Venture Market is that the
issuer be current with its financial disclosures with the
Securities and Exchange Commission, which Capstone has been for
several years.
Shareholders of record will not be required to take any action
in connection with the reverse split and will see the impact of the
reverse split automatically reflected in their accounts on the
effective date. There will be no change to the voting power
or percentage of total ownership of any stockholder as a result of
the reverse split.
FORWARD-LOOKING STATEMENTS:This news release
contains "forward-looking statements" as that term is defined in
the Private Securities Litigation Reform Act of 1995, as
amended. Such statements consist of words like “anticipate,”
“expect,” “project,” “continue” and similar words. These
statements are based on the Company’s and its subsidiaries’ current
expectations and involve risks and uncertainties, which may cause
results to differ materially from those set forth in the
forward-looking statements. Factors that may cause actual
results to differ materially from those contemplated by such
forward-looking statements, include consumer acceptance of the
Company’s products, its ability to deliver new products, the
success of its strategy to broaden market channels and the
relationships it has with retailers and distributors. Prior
success in operations does not necessarily mean success in future
operations. The ability of the Company to adequately and
affordably fund operations and any growth will be critical to
achieving and sustaining any expansion of markets and
revenue. The introduction of new products or the expanded
availability of products does not mean that the Company will enjoy
better financial or business performance. The risks associated with
any investment in Capstone Companies, Inc., which is a small
business concern and a "penny-stock Company” and, as such, a highly
risky investment suitable for only those who can afford to lose
such investment, should be evaluated together with the risks and
uncertainties more fully described in the Company’s Annual and
Quarterly Reports filed with the Securities and Exchange
Commission. Capstone Companies, Inc. undertakes no obligation
to publicly update or revise any forward-looking statement, whether
as a result of new information, future events, or otherwise.
Contents of referenced URLs are not incorporated into this press
release.
For more information, contact
Company:
Aimee Gaudet
Corporate Secretary
(954) 570-8889, ext. 313
Investor Relations:
Garett Gough, Kei Advisors LLC
(716) 846-1352
ggough@keiadvisors.com
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