ELAN.OB files preliminary proxy for reverse stock split:
sec.gov
Q: What if I hold shares of common stock in “street name”?
A: If a stockholder holds shares of our common stock in “street name,” then their broker, bank or other nominee is considered the stockholder of record with respect to those shares and not such stockholder. We intend to treat
stockholders holding shares of our common stock in street name through a nominee (such as a broker, bank or other nominee) in the same manner as stockholders whose shares are registered in their own name. Accordingly, if a stockholder holds 150,000 or more shares of common stock in street name they will remain a stockholder after consummation of the Reverse Stock Split. On the other hand, if a stockholder holds fewer than 150,000 shares of common stock in street name it is intended that they receive cash for their shares. However, it is also possible that the bank, broker or other nominee also holds shares for other beneficial owners of our common stock and that it may hold 150,000 or more shares in the aggregate. Therefore, depending upon their nominee’s procedures, a stockholder’s nominee may not be obligated to treat the Reverse Stock Split as affecting its beneficial holders’ shares and such stockholder may not receive cash for their fractional interests.
If a stockholder holds fewer than 150,000 shares of our common stock in street name, we encourage them to contact their bank, broker or other nominee directly as soon as possible so that arrangements can be made, if necessary, to register their holdings to ensure that they receive the cash payment of $0.65 per pre-split share. See the information under the caption “Special Factors—Effects of the Reverse Stock Split” in this information statement. |
