BRAKE HEADQUARTERS USA, INC. ANNOUNCES REVERSE STOCK SPLIT, EFFECTIVE JANUARY 29, 1999.LONG ISLAND CITY, N.Y.--(BUSINESS WIRE)--January 19, 1999--Brake Headquarters USA, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :BHQU) announced today that the Board of Directors approved effective January 29, 1999, a one (1) for three (3) reverse split of the Company's common stock. The reverse split was authorized by shareholders at the Company's 1998 annual meeting, with implementation left to the discretion of the Board of Directors. The common stock will commence trading on January 29, 1999 at the adjusted price, giving effect to the reverse stock split. To denote the change, the stock symbol will have a letter D added as a fifth character, and for twenty (20) consecutive trading days In Business, the trading day is the time span that a particular stock exchange is open. For example, the New York Stock Exchange is, as of 2006, open from 09:30AM to 4:00PM. Trading days never take place on weekends. , beginning January 29, 1999 shares of common stock will trade under the symbol BHQUD to indicate that the split has been effected. The reverse split will reduce the number of common shares outstanding to about 3,600,000 from approximately 10,718,000 shares. The reverse stock split was implemented, for among other things, in order to regain compliance with the NASDAQ Small Cap Market's minimum closing bid requirements, of at least $1.00. In order to maintain the listing of common stock on the NASDAQ, it will be required that shares of the stock maintain a minimum closing bid of at least $1.00 for ten (10) consecutive trading days following the split. The Company is scheduled to appear before a NASDAQ hearing panel on January 22, 1999, at which time it will seek an extension of time to become compliant, although there is no assurance that an extension will be granted. Joseph Ende, President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Brake Headquarters USA, Inc. commented, "We effected the reverse split to retain our listing on NASDAQ, which we believe to be in the best interests of both the Company and our shareholders. Additionally, the adjustment of our stock price to a higher level should provide us with a better opportunity to attract institutional investors Institutional Investor A non-bank person or organization that trades securities in large enough share quantities or dollar amounts that they qualify for preferential treatment and lower commissions. as shareholders. This will allow us to move forward with our strategic growth plan and to capitalize on Cap´i`tal`ize on` v. t. 1. To turn (an opportunity) to one's advantage; to take advantage of (a situation); to profit from; as, to capitalize on an opponent's mistakes s>. opportunities afforded the Company by maintaining our listing on NASDAQ." Founded in 1976, Brake Headquarters USA, Inc. is a rapidly growing manufacturer, wholesaler and distributor of automotive brake system products and other component parts for domestic and foreign cars and light trucks. This release contains certain forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that involve known and unknown risks, uncertainties. The Company's actual results may differ materially from the results discussed in the forward-looking statements. Factors that might cause or contribute to such differences include, but are not limited to intense competition; the Company's dependence on the automotive industry The automotive industry is the industry involved in the design, development, manufacture, marketing, and sale of motor vehicles. In 2006, more than 69 million motor vehicles, including cars and commercial vehicles were produced worldwide. , which is cyclical cyclical Of or relating to a variable, such as housing starts, car sales, or the price of a certain stock, that is subject to regular or irregular up-and-down movements. ; historical decreases in internal growth rates Growth Rates The compounded annualized rate of growth of a company's revenues, earnings, dividends, or other figures. Notes: Remember, historically high growth rates don't always mean a high rate of growth looking into the future. and historical losses, the Company's ability to manage growth; and other risks discussed in reports filed by the Company with the Securities and Exchange Commission from time to time. |
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