Office Depot, Inc. Announces 1-for-10 Reverse Stock Split to be Effective June 30, 2020
June 26 2020 - 6:15AM
Business Wire
Office Depot, Inc. (NASDAQ: ODP) (the “Company”), a leading
provider of business services and supplies, products and technology
solutions through an integrated B2B distribution platform, today
announced that its Board of Directors has approved a reverse stock
split of the Company’s common stock at a ratio of 1-for-10, to
become effective at 4:01 p.m. EDT on June 30, 2020.
As previously disclosed, the Company’s shareholders approved the
reverse stock split at the Annual Meeting of Shareholders of the
Company held on May 11, 2020, with the exact ratio and effective
time to be determined by the Board of Directors. Following
shareholder approval, the Company’s Board of Directors determined
to effectuate the reverse stock split of the common stock at a
1-for-10 ratio and to proportionately decrease the number of
authorized shares of common stock from 800,000,000 to
80,000,000.
No fractional shares will be issued in connection with the
reverse stock split. Shareholders of record who would have
otherwise been entitled to receive a fractional share as a result
of the reverse stock split will instead receive a cash payment in
lieu of such fractional shares.
Additional details will be contained in a Current Report on Form
8-K to be filed with the U.S. Securities and Exchange Commission
upon the effectiveness of the reverse stock split.
About Office Depot, Inc.
Office Depot, Inc. (NASDAQ:ODP) is a leading provider of
business services and supplies, products and technology solutions
to small, medium and enterprise businesses, through a fully
integrated B2B distribution platform of approximately 1,300 stores,
online presence, and dedicated sales professionals and technicians.
Through its banner brands Office Depot®, OfficeMax®, CompuCom® and
Grand&Toy®, as well as others, the Company offers its customers
the tools and resources they need to focus on their passion of
starting, growing and running their business. For more information,
visit news.officedepot.com and follow @officedepot on Facebook,
Twitter and Instagram.
Office Depot is a trademark of The Office Club, Inc. OfficeMax
is a trademark of OMX, Inc. CompuCom is a trademark of CompuCom
Systems, Inc. Grand & Toy is a trademark of Grand & Toy,
LLC in Canada. ©2020 Office Depot, Inc. All rights reserved. Any
other product or company names mentioned herein are the trademarks
of their respective owners.
FORWARD LOOKING STATEMENTS
This communication may contain forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. These statements or disclosures may discuss goals, intentions
and expectations as to future trends, plans, events, results of
operations, cash flow or financial condition, the potential impacts
on our business due to the unknown severity and duration of the
COVID-19 outbreak, or state other information relating to, among
other things, Office Depot, based on current beliefs and
assumptions made by, and information currently available to,
management. Forward-looking statements generally will be
accompanied by words such as “anticipate,” “believe,” “plan,”
“could,” “estimate,” “expect,” “forecast,” “guidance,” “outlook,”
“intend,” “may,” “possible,” “potential,” “predict,” “project,”
“propose” or other similar words, phrases or expressions, or other
variations of such words. These forward-looking statements are
subject to various risks and uncertainties, many of which are
outside of Office Depot’s control. There can be no assurances that
Office Depot will realize these expectations or that these beliefs
will prove correct, and therefore investors and stakeholders should
not place undue reliance on such statements.
Factors that could cause actual results to differ materially
from those in the forward-looking statements include, among other
things, highly competitive office products market and failure to
differentiate Office Depot from other office supply resellers or
respond to decline in general office supplies sales or to shifting
consumer demands; competitive pressures on Office Depot’s sales and
pricing; the risk that Office Depot is unable to transform the
business into a service-driven company or that such a strategy will
not result in the benefits anticipated; the risk that Office Depot
may not be able to realize the anticipated benefits of acquisitions
due to unforeseen liabilities, future capital expenditures,
expenses, indebtedness and the unanticipated loss of key customers
or the inability to achieve expected revenues, synergies, cost
savings or financial performance; the risk that Office Depot is
unable to successfully maintain a relevant omni-channel experience
for its customers; the risk that Office Depot is unable to execute
the Business Acceleration Program successfully or that such program
will not result in the benefits anticipated; failure to effectively
manage Office Depot real estate portfolio; loss of business with
government entities, purchasing consortiums, and sole- or limited-
source distribution arrangements; failure to attract and retain
qualified personnel, including employees in stores, service
centers, distribution centers, field and corporate offices and
executive management, and the inability to keep supply of skills
and resources in balance with customer demand; failure to execute
effective advertising efforts and maintain the Office Depot
reputation and brand at a high level; disruptions in Office Depot
computer systems, including delivery of technology services; breach
of Office Depot information technology systems affecting
reputation, business partner and customer relationships and
operations and resulting in high costs; unanticipated downturns in
business relationships with customers or terms with the suppliers,
third-party vendors and business partners; disruption of global
sourcing activities, evolving foreign trade policy (including
tariffs imposed on certain foreign made goods); exclusive Office
Depot branded products are subject to additional product, supply
chain and legal risks; product safety and quality concerns of
manufacturers’ branded products and services and Office Depot
private branded products; covenants in the credit facility; a
downgrade in Office Depot credit ratings or a general disruption in
the credit markets; incurrence of significant impairment charges;
retained responsibility for liabilities of acquired companies;
fluctuation in quarterly operating results due to seasonality of
Office Depot business; changes in tax laws in jurisdictions where
Office Depot operates; increases in wage and benefit costs and
changes in labor regulations; changes in the regulatory
environment, legal compliance risks and violations of the U.S.
Foreign Corrupt Practices Act and other worldwide anti-bribery
laws; volatility in Office Depot common stock price; changes in or
the elimination of the payment of cash dividends on Office Depot
common stock; macroeconomic conditions such as future declines in
business or consumer spending; increases in fuel and other
commodity prices and the cost of material, energy and other
production costs, or unexpected costs that cannot be recouped in
product pricing; unexpected claims, charges, litigation, dispute
resolutions or settlement expenses; catastrophic events, including
the impact of weather events on Office Depot’s business; the
discouragement of lawsuits by shareholders against Office Depot and
its directors and officers as a result of the exclusive forum
selection of the Court of Chancery, the federal district court for
the District of Delaware or other Delaware state courts by Office
Depot as the sole and exclusive forum for such lawsuits; and the
impact of the COVID-19 pandemic on our business, including on the
demand for our and our customers’ products and services, on trade
and transport restrictions and generally on our ability to
effectively manage the impacts of the COVID-19 pandemic on our
business operations. The foregoing list of factors is not
exhaustive. Investors and shareholders should carefully consider
the foregoing factors and the other risks and uncertainties
described in Office Depot’s Annual Reports on Form 10-K, Quarterly
Reports on Form 10-Q, and Current Reports on Form 8-K filed with
the U.S. Securities and Exchange Commission. Office Depot does not
assume any obligation to update or revise any forward-looking
statements.
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version on businesswire.com: https://www.businesswire.com/news/home/20200626005053/en/
Tim Perrott Investor Relations 561-438-4629
Timothy.Perrott@officedepot.com
Danny Jovic Media Relations 561-438-1594
Danny.Jovic@officedepot.com
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