SAN DIEGO, Oct. 5, 2017 /PRNewswire/ -- InfoSonics
Corporation ("InfoSonics" or the "Company") (NASDAQ: IFON)
announced today that it will effect a 1-for-5 reverse stock split.
The 1-for-5 reverse stock split will be effective as of the close
of business on October 10, 2017 (the
"Effective Date") and the Company's common stock will begin trading
on a split-adjusted basis on October 11,
2017.
The reverse stock split will reduce the number of shares of the
Company's common stock currently outstanding from approximately
16.9 million shares to approximately 3.4 million shares.
Proportional adjustments will be made to the conversion and
exercise prices of the Company's outstanding stock options and to
the number of shares issued and issuable under the Company's equity
compensation plans. The number of authorized shares of the
Company's common stock will remain 40 million shares at this
time.
The reverse stock split is intended to increase the market price
per share of the Company's common stock to allow the Company to
maintain the listing of its common stock on The NASDAQ Capital
Market. The Company's common stock will continue to trade on The
NASDAQ Capital Market under the symbol "IFON". The new CUSIP number
for the common stock following the reverse stock split will be
456784206.
Information for Stockholders
Upon the effectiveness of the reverse stock split, each five
shares of the Company's issued and outstanding common stock will be
automatically combined and converted into one issued and
outstanding share of common stock, par value $0.001 per share. The Company will not issue any
fractional shares in connection with the reverse stock split.
Instead, fractional share interests will be rounded up to the next
largest whole number. The reverse stock split will not modify the
rights or preferences of the common stock.
The Company's transfer agent, Computershare Trust Company, N.A.
("Computershare"), will act as its exchange agent for the reverse
stock split. Computershare 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 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 such
broker's particular processes, and will not be required to take any
action in connect with the reverse stock split. Computershare can
be reached at (303) 262-0786.
About InfoSonics Corporation
InfoSonics is a San Diego-based
manufacturer and provider of wireless handsets, tablets and related
products to carriers, distributors and retailers in Latin America under the verykool® brand. The
Company is committed to delivering quality products with innovative
designs that appeal to consumers and offer exceptional value.
Additional information can be found on its corporate websites at
www.infosonics.com and www.verykool.net.
Cautionary Statement Regarding Forward-Looking
Statements
Certain statements in this press release may constitute
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. These forward-looking
statements, which include statements relating to the effectiveness
of the reverse stock split, are made on the basis of the current
beliefs, expectations and assumptions of the management of
InfoSonics and are subject to significant risks and uncertainty.
Investors are cautioned not to place undue reliance on any such
forward-looking statements. All such forward-looking statements
speak only as of the date they are made, and InfoSonics undertakes
no obligation to update or revise these statements, whether as a
result of new information, future events or otherwise. Although
InfoSonics believes that the expectations reflected in these
forward-looking statements are reasonable, these statements involve
many risks and uncertainties that may cause actual results to
differ materially from what may be expressed or implied in these
forward-looking statements, and there is no guaranty that the
minimum bid price of InfoSonics common stock will remain at or
above the required level for a sufficient period of time after the
reverse stock split in order for the stock to remain listed on The
NASDAQ Capital Market. For a further discussion of risks and
uncertainties that could cause actual results to differ from those
expressed in these forward-looking statements, as well as risks
relating to the business of InfoSonics in general, see the risk
disclosures in the Annual Report on Form 10-K of InfoSonics for the
year ended December 31, 2016, and in
subsequent reports on Forms 10-Q and 8-K and other filings made
with the U.S. Securities and Exchange Commission by InfoSonics,
which are available at http://www.sec.gov.
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SOURCE InfoSonics Corporation