TAIPEI, Nov. 4, 2015 /PRNewswire/ -- GigaMedia Limited
(NASDAQ: GIGM) (the "Company"), an online games and
computing services provider, today announced that its Board of
Directors has authorized the Company to seek shareholder approval
to effect a reverse stock split of GigaMedia's common stock. The
reverse stock split is currently anticipated to be in a 1-for-5
ratio. The reverse stock split proposal will be submitted to
shareholders at an Extraordinary General Meeting of GigaMedia's
shareholders. An affirmative vote by shareholders will permit the
Board to implement the reverse stock split.
Assuming the anticipated ratio, at the effective time of the
reverse stock split, every 5 shares of issued and outstanding
common stock will be converted into one share of common stock. The
reverse stock split affects all of the issued and outstanding
common shares, stock options and other equity awards of the
Company. The reverse stock split will reduce the number of shares
of common stock outstanding from approximately 55.3 million shares
to approximately 11.1 million shares.
The primary purpose of the reverse stock split is to bring the
Company back into compliance with the minimum bid price requirement
on the Nasdaq Capital Market. In order to regain compliance, the
minimum bid price per share of the Company's common stock must be
at least $1.00 for at least ten
consecutive business days during the additional 180-day grace
period, which will end on January 11,
2016.
Additional information will be set out in the Company's proxy
statement which will be delivered to shareholders during the week
of November 23, 2015.
About GigaMedia
Headquartered in Taipei,
Taiwan, GigaMedia Limited (Singapore registration number: 199905474H) is
a diversified provider of online games and cloud computing
services. GigaMedia's online games business is an innovative leader
in Asia with growing game
development, distribution and operation capabilities, as well as
platform services for games; focus is on mobile games and social
casino games. The Company's cloud computing business is focused on
providing enterprises in Greater
China with critical communications services and IT solutions
that increase flexibility, efficiency and competitiveness. More
information on GigaMedia can be obtained from
www.gigamedia.com.
The statements included above and elsewhere in this press
release that are not historical in nature are "forward-looking
statements" within the meaning of the "safe harbor" provisions of
the Private Securities Litigation Reform Act of 1995. GigaMedia
cautions readers that forward-looking statements are based on the
company's current expectations and involve a number of risks and
uncertainties. Actual results may differ materially from those
contained in such forward-looking statements. Information as to
certain factors that could cause actual results to vary can be
found in GigaMedia's Annual Report on Form 20-F filed with the
United States Securities and Exchange Commission in April 2015.
Amanda Chang
Investor Relations Department
Country/City Code 8862 Tel: 2656-8080
amanda.chang@gigamedia.com.tw
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SOURCE GigaMedia Limited