LOS GATOS, Calif., June 25, 2014 /PRNewswire/ -- iGo, Inc. (OTC PINK: IGOI) (the "Company") announced today that the Company's Board of Directors has approved a reverse split of the Company's common stock, par value $0.01 per share, immediately followed by a forward stock split of the Company's common stock, intended to reduce the costs associated with servicing stockholder accounts holding relatively small numbers of shares of the Company's common stock. The Board of Directors determined to fix the ratio for the reverse stock split at 1-for-250 and the ratio for the forward stock split at 250-for-1. The reverse and forward stock splits are expected to be effective as of 5:00 pm and 5:01 pm, respectively, on July 17, 2014, subject to approval by the Financial Industry Regulatory Authority, Inc. ("FINRA"). The Board of Directors has retained the authority to reject (and not implement) the reverse and forward stock splits if the Board subsequently determines that the reverse and forward stock splits, for any reason including but not limited to preserving the Company's net operating losses, are not then in the Company's and its stockholders' best interests. Such reasons include any change in the nature of the Company's stockholdings prior to the effective date of reverse and forward stock splits.
The Company's stockholders had previously approved amendments to the Company's Certificate of Incorporation to effect the reverse and forward stock splits and authorized the Company's Board of Directors to determine the respective reverse and forward split ratios, at the Company's Annual Meeting of Stockholders held on May 13, 2014.
Pursuant to the reverse and forward stock splits, stockholders holding less than 250 shares of the Company's common stock immediately prior to the effective time of reverse stock split will not receive fractional shares in the reverse stock split, but will instead have their shares cancelled and converted into the right to receive a cash payment of $3.35 per pre-reverse stock split share. Stockholders holding 250 or more shares of the Company's common stock immediately prior to the effective time of the reverse stock split will not receive a cash payment, but will continue to hold the same number of shares after completion of the reverse/forward stock split as they held immediately prior to the reverse stock split. The Company expects both registered and beneficial stockholder accounts holding less than 250 shares of common stock will be cashed out; however, persons that beneficially hold shares through a nominee (such as a broker or bank) will be advised to contact their nominee to be informed of any procedures such holders may need to follow in order to ensure the same treatment as registered stockholders.
The Company expects that approximately123,000 of its outstanding shares of common stock will be fractionalized as a result of the reverse stock split and subsequently cancelled and converted into the right to receive a cash payment in exchange for each pre-reverse stock split shares.
For more information regarding the reverse/forward stock split, please refer to the Proxy Statement relating to the Company's stockholder meeting held on May 13, 2014 that was previously mailed to the Company's stockholders.
About iGo, Inc.
iGO has been a leader in the mobile accessories industry since 1995, offering premium power solutions for laptop computers and electronic mobile devices that enhance the possibility of living life fully charged. iGO's universal chargers, batteries, and audio accessories offer support and performance that elevates the mobile consumer experience.
iGO's products are available at www.igo.com as well as through leading resellers and retailers.
iGO is a registered trademark of iGo, Inc. All other trademarks or registered trademarks are the property of their respective owners.
iGO has adopted a Rights Agreement to deter acquisitions of 4.9% or more of the Company's common stock (subject to certain exceptions) by any group or person in order to protect the Company's ability to utilize its net loss carryforwards to reduce potential future federal income tax obligations.
Certain information in this press release may constitute forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995. The words "believe," "expect," "anticipate," "should," and other similar statements of our expectation identify forward-looking statements. These statements are based on the Company's current expectations and economic environment and are not guarantees of future performance. These statements involve involves risks and uncertainties that could cause actual results to differ materially from those estimated. Persons are cautioned that such forward-looking statements are not guarantees of future performance and are subject to various factors that could cause actual results to differ materially from those estimated. Undue reliance should not be placed on such forward-looking statements.
The Company undertakes no obligation to publicly update or revise any forward-looking statements, or any facts, events, or circumstances after the date hereof that may bear upon forward-looking statements. Additionally, the Company does not undertake any responsibility to update you on the occurrence of unanticipated events which may cause actual results to differ from those expressed or implied by these forward-looking statements.
Terry R. Gibson
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