Phoenix Footwear Group, Inc., the owner of Trotters, SoftWalk, and H.S. Trask, announced that at a special meeting on Jan. 28 its shareholders approved a 1-for-200 reverse stock split of the company's common stock, to be immediately followed by a 200-for-1 forward stock split of the common stock.
As a result, registered shareholders owning fewer than 200 shares of common stock of record prior to the Reverse Stock Split will have such pre-split shares cancelled and converted into the right to receive cash consideration of 75 cents per pre-split share. The Reverse/Forward Stock Split will be effective following the close of business on Jan. 31, 2011.
The purpose of the Reverse/Forward Stock Split is to allow the company to suspend its Securities and Exchange Commission reporting obligations by reducing the number of stockholders of record to fewer than 300. The company expects to repurchase approximately 12,800 shares for $9,600 and reduce its number of shareholders of record to approximately 210. As a result, the company expects to terminate the registration of its common stock under federal securities laws as soon as practicable. The company also intends to file a Form 25 with the SEC to voluntarily delist its shares from the NYSE AMEX as soon as possible after completion of the stock split. This delisting will take effect 10 days following the filing of the Form 25.
Jim Riedman, CEO and President, stated, “We are pleased to announce this Reverse/Forward Split, as it is an important step toward our goal of simplifying the operating structure of the Company and reducing overhead costs significantly. We believe that we initiated this process at an appropriate time and that it is in the best interest of our stockholders and the Company's future growth. We look forward to our shares trading on the Pink OTC Markets and providing the shareholders with financial information relating to the fiscal year ended January 1, 2011 in the near future.”
