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news release:
Superconductor Technologies Inc. Completes
1-for-10 Reverse Stock Split
Santa Barbara, CA, Mar. 13: Superconductor
Technologies Inc. (NASDAQ:
SCOND) ("STI"),
a leading provider of high performance infrastructure products for wireless
voice and data applications, today announced that it has effected a one-for-ten
(1:10) reverse split of its common stock. The reverse stock split, which was
authorized by its Board of Directors and announced March 2, 2006, was approved
by STI's stockholders last May at the 2005 Annual Meeting. Upon today's market
open, STI's common stock will begin trading on a split-adjusted basis under the
trading symbol "SCOND" for a period of 20 trading days. Commencing April 10,
2006, STI expects the "D" designation will be removed, and its common stock will
resume trading under the symbol "SCON."
STI has implemented the reverse stock split in order to meet the Nasdaq Capital
Market's maintenance standard that requires STI to maintain at least a $1.00 per
share minimum bid price. STI anticipates that following the reverse stock split,
its common stock will trade at a price higher than the $1.00 per share minimum
bid price. However, there can be no assurance that, after the consummation of
the reverse stock split, the common stock will trade at ten (10) times the
market price prior to the reverse stock split or above the $1.00 per share
minimum bid price.
In the reverse split, each ten shares of issued and outstanding common stock
will be converted automatically into one share of common stock. No fractional
shares will be issued in connection with the reverse stock split, and
stockholders who would be entitled to fractional shares will receive cash in
lieu of fractional shares. The number of shares of STI common stock issued and
outstanding will be reduced from approximately 124.8 million as of February 28,
2006 to approximately 12.5 million shares outstanding post split. The reverse
split will also have a proportionate affect on all stock options and warrants
outstanding as of March 10, 2006.
Stockholders who hold their shares in brokerage accounts or "street name" will
not be required to take any action to effect the exchange of their shares.
Stockholders of record as of March 10, 2006 who hold share certificates will
receive instructions from STI's transfer agent, Registrar and Transfer Company,
explaining the process for obtaining new post-split stock certificates.
Registrar and Transfer Company will act as the exchange agent for purposes of
implementing the exchange of stock certificates.
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