CORAL GABLES, Fla., Dec. 29 /PRNewswire/ -- Rica Foods, Inc. (Nasdaq: RICAD)(the "Company") announced today that its Board of Directors approved on December 15, 1998 a one-for-three reverse stock split on December 29, 1998. The Company believes this reverse split will benefit the shareholders by increasing the marketability and liquidity of the common stock by generating increased market attention on the Company and creating a more attractive investment vehicle for new investors.
The Company also decided it is to the best interests of the Company and its shareholders to reduce the outstanding shares, in light of the recent acquisition of control of Corporacion As de Oros, S.A. ("As de Oros") and the expected issuance of shares to complete the purchase of the remaining interests in As de Oros and Corporacion Pipasa, S.A. ("Pipasa"). The amount of shares reserved for issuance to Pipasa and As de Oros shareholders will be reduced by one-third to reflect the reverse split. As required by Nevada law, a certificate of reverse stock split was filed with the State of Nevada on December 24, 1998. The Board of Directors approved on December 15, 1998, a Stock Repurchase Plan for up to 250,000 shares of Company stock, from time to time, as circumstances warrant.
The Company also announced that the Company received approval for both acquisitions of Pipasa and As de Oros from more than 51% of the outstanding common shares by December 15, 1998. As of December 28, 1998 the definitive tabulation of votes reflect 14,368,286 votes for the acquisitions, 335 votes against, and 5,441 votes abstaining. The Company expects the fairness opinion for both acquisitions to be received by or before January 31, 1999, thus allowing it to conclude the acquisitions. |
