Alloy Implements One-for-Four Reverse Stock Split
February 01 2006 - 8:00AM
Business Wire
Alloy, Inc. ("Alloy") (NASDAQ: ALOY/ ALOYD) announced that,
effective as of today, it will implement a shareholder approved
one-for-four reverse stock split. Such reverse stock split affects
all outstanding shares held as of the close of trading on Tuesday,
January 31, 2006, and Alloy's common stock will begin trading as
adjusted for the reverse stock split today, Wednesday, February 1,
2006. Holders of Alloy stock approved the authorization of a
reverse stock split of the common stock at a special meeting of
stockholders held on January 12, 2006. The Alloy Board of Directors
approved implementing the reverse stock split in a one-for-four
ratio on the same date, subsequent to the special stockholder
meeting. As a result of the reverse stock split, each four shares
of Alloy common stock will be converted and reclassified as one
share, thereby reducing the number of shares of common stock
outstanding from approximately 46.7 million to approximately 11.7
million. Alloy will not issue any fractional shares in connection
with the reverse stock split. Stockholders holding fractional
shares will be entitled to a cash payment equal to the fraction to
which such stockholders would otherwise be entitled, multiplied by
$2.81, the closing price of Alloy common stock on January 31, 2006.
The reverse stock split will affect all shares of Alloy's common
stock, including those shares underlying stock options, warrants
and convertible debentures outstanding immediately prior to the
reverse stock split effective date. Beginning today, Alloy's common
stock will trade under the symbol "ALOYD" for 20 trading days to
designate that it is trading on a post-reverse stock split basis.
Alloy's common stock will resume trading under the symbol "ALOY"
after that 20-day period has elapsed. Shareholders of record will
receive letters of transmittal and related instructions from
Alloy's transfer agent, American Stock Transfer and Trust Company.
Shareholders who keep their shares in street name with brokerage
firms will have their accounts adjusted by their respective
brokers. Questions and requests for letters of transmittal should
be directed to Shareholder Relations at American Stock Transfer and
Trust Company at (877) 248-6417 or (718) 921-8317. About Alloy,
Inc. Alloy, Inc., under the banner of Alloy Media + Marketing
(AM+M), is a media and marketing services company that primarily
targets Generation Y, a key demographic segment comprising more
than 60 million boys and girls in the United States between the
ages of 10 and 24. AM+M is one of the largest providers of directed
media and promotional marketing programs toward this important
demographic. Working with AM+M, marketers connect with their
intended audience through a host of advertising and marketing
programs incorporating Alloy's wide ranging media and marketing
assets, expertise and relationships including direct mail catalogs,
college and high school newspapers, web sites, display media
boards, college guides, and promotional events. For further
information regarding Alloy, please visit our corporate website at
(www.alloyinc.com). This announcement may contain forward-looking
statements within the meaning of Section 27A of the Securities Act
of 1933 and Section 21E of the Securities Exchange Act of 1934,
including statements regarding our expectations and beliefs
regarding our future results or performance. Because these
statements apply to future events, they are subject to risks and
uncertainties. When used in this announcement, the words
"anticipate", "believe", "estimate", "expect", "expectation",
"project" and "intend" and similar expressions are intended to
identify such forward-looking statements. Our actual results could
differ materially from those projected in the forward-looking
statements. Additionally, you should not consider past results to
be an indication of our future performance. Factors that might
cause or contribute to such differences include, among others, our
ability to: increase revenues; generate high margin sponsorship and
multiple revenue streams; develop our sales and marketing teams and
capitalize on these efforts; develop commercial relationships with
advertisers and the continued resilience in advertising spending to
reach the teen market; manage the risks and challenges associated
with integrating newly acquired businesses; and identify and take
advantage of strategic, synergistic acquisitions and other revenue
opportunities. Other relevant factors include, without limitation:
our competition; seasonal sales fluctuations; the uncertain
economic and political climate in the United States and throughout
the rest of the world, and the potential that such climate may
deteriorate further; and general economic conditions. For a
discussion of certain of the foregoing factors and other risk
factors see the "Risk Factors That May Affect Future Results" set
forth in Alloy's filings with the Securities and Exchange
Commission. We do not intend to update any of the forward-looking
statements after the date of this announcement to conform these
statements to actual results, to changes in management's
expectations or otherwise, except as may be required by law.
Alloy (NASDAQ:ALOYD)
Historical Stock Chart
From May 2024 to Jun 2024
Alloy (NASDAQ:ALOYD)
Historical Stock Chart
From Jun 2023 to Jun 2024