It looks like there was a one for seven reverse split. Your $.87 shares are probably $6.07 shares.
biz.yahoo.com
Wednesday April 21, 11:10 am Eastern Time
Company Press Release
SOURCE: Palomar Medical Technologies, Inc.
Palomar Stockholders Approve $65 Million Sale of Star Subsidiary and
Reverse Stock Split; Board Adopts Stockholder Rights Plan
LEXINGTON, Mass., April 21 /PRNewswire/ -- Palomar Medical Technologies, Inc. (Nasdaq: PMTI - news), the technology leader in laser hair removal, announced that at a Special Meeting today, its stockholders approved the sale of Palomar's Star Medical Technologies, Inc. subsidiary to Coherent, Inc. (Nasdaq: COHR - news) for $65 million in cash and an ongoing 7.5% royalty. Palomar owns 82% of Star, and anticipates its net gain before taxes will be approximately $49 million at the closing, which is expected to occur shortly.
Also at today's Special Meeting of Stockholders, a recapitalization was approved to implement a one-for-seven reverse split of Palomar's common stock and a reduction in authorized capital stock to 45 million shares of common and 1.5 million of preferred.
As a result of the stockholder vote, effective on the close of business on Friday, May 7, 1999, Palomar's authorized shares of common shares outstanding will be approximately 10.5 million. The common stock will begin trading on a post-split basis on Monday, May 10, initially under the symbol PMTID on the Nasdaq Small Cap Market. The company's transfer agent, the American Stock Transfer & Trust Company, Inc., will mail stockholders of record as of May 7, 1999 instructions regarding the exchange of their stock certificates for certificates evidencing the post-split shares.
''We are very pleased that our stockholders agreed with the recommendation of Palomar's Board of Directors and approved these two important proposals,'' said Louis P. (Dan) Valente, chairman and chief executive officer of Palomar. ''We believe the turnaround of Palomar is complete, and we are now postured for even greater success.''
In another development, the Palomar Board of Directors has approved a stockholder rights plan. Under the rights plan, each Palomar stockholder will receive a dividend of one non-voting right for each share of the company's common stock owned. Each right entitles the holder to purchase one one- thousandth (1/1,000) of a share of Series A Participating Cumulative Preferred Stock at a purchase price of $8.00.
Valente said that this action was not taken in response to any proposed acquisition or tender offer and that the Palomar Board of Directors is not aware of any current effort to acquire control of the company.
Initially, the rights are attached to the company's common shares, are not exercisable and do not represent any significant value to stockholders. If any person acquires 15% or more of Palomar's outstanding common stock, each right will entitle its holder (other than any such 15% holder) to purchase shares of the company's Series A Participating Cumulative Preferred Stock with a value of twice the purchase price. The Board of Directors may redeem the rights at $0.01 per right at any time prior to any person or group becoming a 15% holder.
The distribution of rights will be made in respect of each share of common stock outstanding on April 20, 1999, and, unless the Board of Directors affirmatively determines otherwise, on each additional share of common stock issued after that date and prior to the date on which the rights become exercisable, as described above. In certain circumstances, rights may also be distributed with respect to shares issued after the date on which the rights became exercisable. The rights distribution will not dilute the stockholders' ownership of the company. The rights will expire in April 2009, unless earlier redeemed by the company. A summary of the terms of the rights plan is being mailed to all Palomar shareholders.
Palomar Medical Technologies, Inc. is a leading developer and supplier of proprietary laser systems for hair removal and other cosmetic laser treatments. Hundreds of Palomar laser hair removal systems have been installed worldwide, and hundreds of thousands of treatments have been performed.
''Safe Harbor'' Statement Under the Private Securities Litigation Reform Act With the exception of the historical information contained in this release, the matters described herein contain forward-looking statements that involve risk and uncertainties, including but not limited to consummation of the sale of Palomar's Star subsidiary that may individually or mutually impact the matters herein, and cause actual results, events and performance to differ materially. These risk factors include, but are not limited to, technological difficulties, lack of product demand and market acceptance, the effect of economic conditions, the impact of competitive products and pricing, governmental regulations of medical devices, and/or other factors outside the control of the company, which are detailed from time to time in the company's SEC filings, including the report on Form 10-K for the year ended December 31, 1998, as amended. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The company undertakes no obligation to release publicly the result of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
Palomar news releases are available through PR Newswire Company News on- Call by fax at 800-758-5804, Extension 107555, or
prnewswire.com. For more information, visit our home
page at palmed.com
SOURCE: Palomar Medical Technologies, Inc. |
