MINNEAPOLIS, April 18, 2019 /PRNewswire/ -- Appliance
Recycling Centers of America, Inc. (Nasdaq: ARCI) ("ARCA" or the
"Company"), a leading provider of utility appliance recycling
programs, announces today that it will effect a 1-for-5 reverse
split of its outstanding common stock on April 19, 2019, which will be effective for
trading purposes as of the commencement of trading on Monday, April 22, 2019.
Trading of the Company's common stock on The Nasdaq Capital
Market will continue, on a post-split basis, with the opening of
the markets on April 22, 2019, under
the existing trading symbol "ARCI" and with a new CUSIP
number: 03814F403. The Company's Series A preferred
stock is not affected by the split, is not listed on any exchange
nor quoted in the Over-the-Counter markets, and its CUSIP number
will remain 03814F304.
As a result of the reverse stock split, every five shares of the
Company's pre-reverse split common stock will be combined and
reclassified into one share of common stock. Further, the
reverse stock split will not affect proportionate voting rights and
other rights of common stockholders. As a result of the
reverse stock split, the conversion ratio of the Company's Series A
preferred stock shall be modified from the current ratio of 1:100
to a post-common stock split ratio of 1:20, which the Company's
Board of Directors has determined, in good faith, to be equitable
in the current circumstances.
Common stockholders who would otherwise hold a fractional share
of common stock will receive an increase to their common stock as
the common stock will be rounded up to a full share. No
fractional shares will be issued in connection with the reverse
stock split. The number of authorized shares of the Company's
common stock will be reduced from 50,000,0000 to 10,000,000.
The number of authorized shares of the Company's preferred stock
will not be affected and shall remain at 2,000,000.
The purpose of the 1-for-5 reverse stock split is to raise the
per share trading price of the Company's common stock in an effort
to continue the Company's listing on The Nasdaq Capital Market.
ARCA and subsidiaries are in the business of recycling major
household appliances in North
America by providing turnkey appliance recycling and
replacement services for utilities and other sponsors of energy
efficiency programs. In addition, through GeoTraq, ARCA is engaged
in the development, design and ultimately ARCA expects the sale of
cellular transceiver modules, also known as Cell-ID modules.
Executive Vice President
Appliance Recycling Centers of America, Inc.
View original content to download
SOURCE Appliance Recycling Centers of America, Inc.