AutoTradeCenter, Inc. has announced that its board of directors has approved a 1-for-100 reverse stock split of its common and preferred stock. The reverse split, effective as of August 2, was approved by a majority of the company's common shareholders and a majority of the company's preferred shareholders.
The company's common stock will continue to trade on the "pink" sheets, effective August 3, 2004, under the temporary trading symbol "AUTCD.PK" for a period of time before reverting back to "AUTC.PK".
As a result of the reverse stock split, every 100 shares of AutoTradeCenter, Inc. will be combined into one share of each stock class. The reverse stock split affects all the company's common stock, preferred stock, stock options, warrants, and other equity-linked instruments outstanding immediately prior to the effective date of the reverse stock split. The reverse stock split will reduce the total number of fully diluted outstanding shares, on an as converted basis, from approximately 1.31 billion shares to approximately 13.1 million shares.
Fractional shares, resulting from the reverse stock split, will be purchased by the company, based on the price determined by the company's board of directors.