CRIIMI MAE Reverse Stock Split Set for October 17
ROCKVILLE, Md., Oct. 11 /PRNewswire/ -- CRIIMI MAE Inc. (NYSE: CMM - news) announced today that a one-for-ten reverse stock split of its shares of common stock will be effective at 12:01 a.m. on October 17, 2001. The common stock will begin trading on a post-reverse-split basis when trading begins on the New York Stock Exchange on October 17, 2001.
After giving effect to the reverse stock split, the Company will have approximately 12.9 million shares of common stock issued and outstanding. This includes the common shares issued as dividends to holders of the Company's Preferred Series E on September 28, 2001 and Preferred Series B, F and G on October 10, 2001. The reverse stock split will not change the number of authorized shares of common stock or the per share par value of the common stock.
The Company will not issue fractional shares in connection with the reverse stock split. Holders of fractional shares will be entitled to cash in lieu of such fractional shares based on the closing price of the Company's common stock on October 17, 2001 as reported on the NYSE.
Chairman William B. Dockser said: ``No doubt about it, our stock price is doing poorly. Yet, our assets generate significant cash flows. We use nearly all of the net cash flows, around $15 million thus far, to pay down our exit financing. Sure, we'd rather have that money to reinvest, but paying down debt, particularly in this economic environment, is positive for shareholders. On top of that, we have over $50 million in cash and liquid assets. So, despite the challenges presented by the downturn in the economy and in certain real estate sectors, given some time, I'm confident in our ability to turn our stock price around and get it moving in the right direction.''
As of September 30, 2001, the Company has paid down approximately $15 million of the aggregate principal balance of its recapitalization financing entered into on April 17, 2001 as part of its reorganization plan. This leaves an aggregate outstanding principal balance of recapitalization financing of approximately $414 million. |
