FLNK
This is the second one of my stocks that I had do this to me this week....the other was FTRK....so much for buying a company because you like them.....
(BSNS WIRE) FutureLink to Effect 1 for 5 Reverse Split
FutureLink to Effect 1 for 5 Reverse Split
Business Editors/Technology Writers
CALGARY, Alberta--(BUSINESS WIRE)--May 14, 1999--FutureLink
(OTC BB:FLNK) is pleased to announce that its Board has passed a
resolution to amend the Company's articles to effect a reverse stock
split on the basis of 1 new share (or share acquisition right) for
every 5 outstanding shares (or share acquisition rights).
"At our annual meeting in November, the shareholders authorized
the Board of Directors to effect a reverse split of up to 1 for 30,"
stated Raghu Kilambi, FutureLink's CFO and a director of the Company.
"However, the board decided that a 1 for 5 reverse stock split was
sufficient to properly structure FutureLink's share capital to
facilitate future growth, including the possibilities of additional
financings, acquisitions and a more senior listing for FutureLink's
stock."
With the Company's recent closing of a private placement led by
Commonwealth Associates for $8 million gross proceeds, the notes and
warrants issued increased the number of shares of common stock
issuable upon conversion of all outstanding share acquisition rights
(option, warrants, other convertible securities) such that on
conversion, the number of shares would exceed the Company's
100,000,000 authorized shares of common stock limit. An examination of
FutureLink's current capital structure (pre-reverse split) shows the
following:
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*T
Issued and Outstanding Common Stock: 30,000,000
shares (approx.)
Issuable on conversion of Commonwealth Notes: 40,000,000
shares
Issuable on exercise of Commonwealth Warrants: 40,000,000
shares
Issuable on exercise of other
share acquisition rights: 45,000,000 shares (approx.)
Total Pre-Reverse Split Shares (fully-diluted): 155,000,000
shares (approx.)
Total Post-Reverse Split Shares (fully-diluted): 31,000,000
shares (approx.)
*T
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The impact of the reverse split will fall equally on all
FutureLink securityholders, including FutureLink's insiders. For
example, a shareholder who currently holds 1,000 shares of common
stock, with a current market value of approximately $1.40 per share,
would hold 200 shares of common stock with an adjusted market value
(assuming today's trading price remains constant) of $7.00 per share
following this reverse split. Another example would be warrants or
employee stock options to acquire 1,000 shares of common stock at an
exercise price of $1.00 becoming warrants or options to acquire 200
shares of common stock at an exercise price of $5.00 per share.
Implementation of this reverse split remains subject to the
Company's filing of amended Articles with the Colorado Secretary of
State. The mechanics of effecting the reverse split, including the
formal amendment of FutureLink's Articles and the adjustments to
outstanding share certificates, which will be handled by the Company's
Transfer Agent, should be completed within the next two to three
weeks. FutureLink expects that its shares will begin to trade on a
post-reverse split basis effective June 1, 1999. The Company will
confirm this date in a subsequent press release.
About FutureLink Distribution Corp.
FutureLink is a founder of the Application Services Provider
(ASP) industry. According to Forrester Research Inc., this industry is
projected to reach $20 billion by 2001. FutureLink provides small and
mid-sized businesses (10-1,000 employees) with off-site,
Internet-based computing, allowing subscribers to escape
hardware/software upgrade cycles, precisely control total cost of
technology ownership and focus on their core businesses. FutureLink's
expertise in application hosting on a monthly subscription basis,
outsourcing and facility management, and business practices consulting
enables the company to offer an all-inclusive, trouble-free service at
a predictable price. FutureLink, "The Computer Utility Company,"
offers computer and information service as transparently and reliably
as today's utilities deliver electricity, water and telephone
services. For more information, contact FutureLink toll-free at
877/216-6001; e-mail: sales@futurelink.net; or visit the FutureLink
Web site at futurelink.net.
Forward-looking statements and comments in this news release are
made pursuant to safe harbor provisions of the Securities Exchange Act
of 1934. Such statements relating to, among other things, the
prospects for the Company to complete transactions and enhance
operating results, are necessary subject to risks and uncertainties,
some of which are significant in scope and nature. These risks may
further be discussed in periodic reports and registration statements
to be filed by the Company from time to time with the Securities and
Exchange Commission in the futur
--30--MJB/ho*
CONTACT: FutureLink
Leone Bechard, 877/216-6001
e-mail: lbechard@futurelink.net
or
Investors: Troy Cleland, 877/216-0001
e-mail: invrel@futurelink.net
KEYWORD: COLORADO INTERNATIONAL CANADA
INDUSTRY KEYWORD: COMED COMPUTERS/ELECTRONICS
INTERACTIVE/MULTIMEDIA/INTERNET
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