3DO Stockholders Approve Reverse Stock Split
REDWOOD CITY, Calif., Aug. 20 /PRNewswire-FirstCall/ -- The 3DO Company (Nasdaq:THDO) announced that stockholders approved a one-for- eight reverse split of its common stock at a Special Meeting held today, with well over ninety percent of the outstanding shares voting in favor of the proposal. The reverse split will be effective as of the close of business on Thursday, August 22, 2002, and 3DO's common stock will begin trading under the split adjustment when the market opens on Friday, August 23, 2002. 3DO's common stock will continue to be traded under the symbol THDO.
3DO anticipates that following the reverse stock split, its common stock will trade at a price that is higher than Nasdaq's $1.00 per share minimum bid price requirement, a price that must be maintained in order to satisfy Nasdaq's continued listing requirements. However, there can be no assurance that, after implementation of the reverse stock split, the common stock will trade at eight times the market price prior to the reverse stock split or above the $1.00 per share minimum bid price. 3DO currently meets the other Nasdaq National Market listing requirements.
About The 3DO Company
The 3DO Company, headquartered in Redwood City, Calif., develops, publishes and distributes interactive entertainment software for personal computers, the Internet and advanced entertainment systems such as the PlayStation(R)2 computer entertainment system, and the Nintendo GameCube(TM)and Game Boy(R) Advance systems. 3DO has also been licensed to develop and publish interactive entertainment products compatible with the Xbox(TM)video game system from Microsoft Corp. More information about The 3DO Company and 3DO products may be found on the Internet at www.3do.com.
The statements contained in this release that are not historical facts are "forward-looking statements" that are subject to risks and uncertainties. 3DO cannot predict whether the reverse stock split will increase the market price for 3DO's common stock; whether the market price per new share of 3DO common stock after the stock split will rise in proportion to the reduction in the number of old shares of 3DO common stock before the reverse stock split; whether the reverse stock split will result in a per share price that will attract brokers and investors who do not trade in lower-priced stocks; whether the market price per new share will either exceed or remain in excess of the $1.00 minimum bid price as required by Nasdaq; or that 3DO will otherwise meet the requirements of Nasdaq for continued inclusion for trading on the Nasdaq National Market. The market price of 3DO's common stock will also be based on 3DO's performance and other factors, some of which are unrelated to the number of shares outstanding. Factors which could cause the Company's results to differ materially include, without limitation, the timely development and commercial release of the Company's products and recognition of revenues, unanticipated expenses, unexpected conversion of preferred stock or exercise of warrants and options, popularity of the Company's brands, and the consequences of competitive factors in the marketplace. Sales of hardware platforms may not correlate to sales of the Company's products. Further information on potential factors which could affect such forward-looking statements and the Company's financial results are described in the Company's filings with the Securities and Exchange Commission, including the Company's Annual Report on Form 10-K for the fiscal year ended March 31, 2002, and the Company's Definitive Proxy Statement on Form DEF 14A. The Company expressly disclaims any obligation to update any forward-looking statement to reflect events or circumstances occurring after the date hereof.
NOTE: 3DO, and the 3DO logo, are trademarks or registered trademarks of The 3DO Company in the U.S. and other countries.
Xbox is a trademark of Microsoft Corporation in the United States and/or other countries.
"PlayStation" and the "PS" Family logo are registered trademarks of Sony Computer Entertainment Inc.
TM, (R), Game Boy Advance and the Nintendo GameCube are trademarks of Nintendo. (C) 2001 Nintendo.
All other trademarks belong to their respective owners.
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SOURCE The 3DO Company
CO: 3DO Company
ST: California
SU:
prnewswire.com
08/20/2002 20:14 EDT |
