Racom Systems Board of Directors Authorizes Reverse Split
Issuance of Preferred Shares
Shareholder-Approved Actions to be Effective on March 1
DENVER--(BUSINESS WIRE)--March 1, 1999-- Racom Systems Inc. (NASDAQ: RCOMD - news), today announced it has completed a reverse split of the Company's Common Stock on the basis of one share for each four and one-half shares outstanding. In addition, it has authorized the issuance of up to 10 million shares of Preferred Stock, par value of $0.01 per share. Both proposals were approved by shareholders at a Special Meeting held on January 29, 1999. Racom's trading symbol is temporarily listed on NASDAQ as ''RCOMD'' to reflect the recent split.
Racom's Board took the actions in an attempt to increase the Company's Common Stock market price and to assist it in securing additional financing. One of several requirements of NASDAQ listing is to maintain a market price of at least $1.00 per share. In recent months, Racom's Common Stock has been trading at or below the $1.00 share minimum.
Regarding the reverse split, Racom will maintain 40 million shares of $.01 par value common stock authorized for issuance. Fractional shares resulting from the reverse stock split will be rounded up to the next whole share. In addition, the Company's option plans and outstanding warrants to purchase Common Stock provide for the adjustment of the number of shares into which each outstanding option is exercisable to reflect the reverse stock split. The issuance of additional shares allows Racom to: Issue from time to time shares of Preferred Stock in one or more series; determine the number of shares to be included in any series; and, to fix the designation, voting power, other powers, preferences and rights of the shares of each series as well as any qualifications, limitations or restrictions of the series.
''We believe these actions are in the best interest of the Company and its shareholders,'' said Art Rancis, CEO of Racom Systems. ''Continued listing of our stock on NASDAQ's SmallCap Market and having a flexible capital structure is necessary for our continued growth and success at this time.''
About Racom Systems Inc.
Racom Systems Inc., headquartered in Denver, Colorado, develops and markets RF-based technologies that automate transactions for electronic commerce, information technology, physical and logical access control and industrial automation. Racom's solutions provide secure, convenient and personalized access to money, information, property and services. For further information about Racom, its technology and products, contact Racom Systems at its Web address, racom.com, by telephone at 303/771-2077, or by fax at 303/771-4708.
This news release contains forward-looking statements. There can be no assurance that actual results will not differ from the Company's expectations. Factors that could cause materially different results include, among others, uncertainties related to the information of the Company's new products and services, the successful completion and integration of acquisitions, and possible negative economic or competitive conditions. Other factors could also cause actual results to vary materially from the future results covered in such forward-looking statements.
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Contact:
Racom Systems Inc.
Marty Cohen (Investor Relations), 972/771-6783
or
Murrel Public Relations
Guy Murrel, 303/581-7760 |
