Tuesday September 5, 10:03 am Eastern Time
Osicom to give Sorrento Networks public company status
SANTA MONICA, Calif., Sept 5 (Reuters) - Osicom Technologies Inc. (NasdaqNM:FIBR - news) on Tuesday said that under a plan to increase shareholder value, it would give independent, public company status to Sorrento Networks, its largest subsidiary and maker of optical products.
This move follows the completion of the merger between Osicom subsidiary, Entrada Networks Inc., and Sync Research Inc., which was completed Aug. 30.
Osicom also said it would change its name to Sorrento Networks, Inc. pending a vote at the company's annual meeting and shares of the ``new'' Sorrento will trade on the Nasdaq National Market under the symbol SRTO.
The plan would significantly increase the cash and cash equivalents available to Sorrento to fund operations, the company said, and is intended to have the smallest tax impact on shareholders as opposed to an initial public offering of the subsidiary.
Xin Cheng, Sorrento's chief executive, will be chairman, president and chief executive of the new company. Sorrento's current president and chief operating officer, Oren Shaffer, has relinquished his management positions and will become an adviser. Rohit Phansalkar, current chairman and chief executive of Osicom, also has relinquished his management roles and will serve as a director. |
