If it's a great gamble at .56, why not .38.
Looks like they're going to consolidate the shares so they can keep the Nasdaq listing. I guess they pretty much have too, if they lose the Nasdaq listing, it's all over.
Heres the news:
Tuesday February 6, 8:42 am Eastern Time
Press Release
JAWZ Seeks Shareholder Approval to Consolidate Shares
TORONTO--(BUSINESS WIRE)--Feb. 6, 2001--The Board of Directors of JAWZ Inc. (Nasdaq:JAWZ - news) have unanimously passed a resolution asking shareholders to consider a proposal to effect a consolidation of the company's common shares.
The proposal approved by the Board of Directors for Shareholder approval is for a share consolidation between a 1 for 3 to a 1 for 10 for shareholders. Management has filed a proxy statement with the SEC dated February 5, 2001, disclosing all relevant details of the proposed consolidation plan. The Special Shareholder Meeting is set for March 14, 2001 at 4:00 pm EST in JAWZ' Toronto office.
``For a number of reasons we believe effecting a share consolidation would be a direct benefit for our shareholders at this time. If the company's share price strengthens, management may elect to postpone or abandon the share consolidation plan,'' states Robert Kubbernus, Chairman and CEO. ``Shareholder approval of the proposal will allow the Company the flexibility to respond to market and regulatory factors. This consolidation will allow Jawz to structure it's share capital and facilitate a number of initiatives such as preserving its NASDAQ National Market listing, attract additional financings, re-negotiate financial structures with Cavallo Capital Corp. and Thompson Kernaghan and consider potential mergers or acquisitions. A consolidation will also enhance the acceptability of JAWZ common stock with certain brokers and financial institutions.''
The impact of a consolidation will equally affect all Jawz security holders, including JAWZ insiders. For example, if a 1 for 4 share consolidation was effected, a shareholder holding 10,000 shares of common stock with a market value of 60 cents per share would following the consolidation hold 2,500 shares of common stock with an adjusted market value of $2.40 per share.
Implementation of the consolidation proposal remains subject to a number of events including Shareholder approval at the March 14, 2001 Special Shareholder Meeting, JAWZ' share price and market conditions.
About JAWZ Inc.: ``JAWZ by Name - Protective by Nature''
JAWZ Inc. is a leading secure information management solutions provider, specializing in the field of full service information security. The company's products and services line includes security software products, consulting services and secure Internet and remote data storage services. These products are offered to key client groups including healthcare providers, governments, law enforcement, financial services, e-commerce businesses, and telecom suppliers specializing as Application Service Providers (ASP) and Internet Service Providers (ISP). It has 50 established strategic partnerships and approximately 400 corporate clients including CU-Connect, Verizon Communications, Group Telecom, Telus, Oracle, GE, among others. International headquarters for JAWZ are located in Toronto, with its US head office in Fairfield, New Jersey. JAWZ employs approximately 250 employees. The company has principal sales and management services offices in Boston, Chicago, California and Orlando, USA and Calgary, Ottawa, Burlington and Edmonton, Canada.
Any statements contained herein that are not historical facts are forward- looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, and involve risks and uncertainties. Potential factors could cause actual results to differ materially from those expressed or implied by such statements. Information on the potential factors that could affect the Company's actual results of operations are included in its filings with the Securities and Exchange Commission. These risks may be further discussed in periodic reports and registration statements to be filed by the Company from time to time with the Securities and Exchange Commission in the future, including but not limited to the Company's S-3 Registration Statement filed January 27, 2001.
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