Butler National Corporation Requests Shareholder Approval of a Reverse Stock Split.OLATHE, Kan.--(BUSINESS WIRE)--Oct. 27, 1998--On October 26, 1998, the Board of Directors of Butler National Corporation (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 : BUKS) directed to officers of the Company to seek approval of the shareholders for an amendment to the Articles of Incorporation The document that must be filed with an appropriate government agency, commonly the office of the Secretary of State, if the owners of a business want it to be given legal recognition as a corporation. of the Company to authorize up to a ten for one reverse stock split with respect to the common stock of the Company to be implemented in the discretion of the Board of Directors. To maintain the listing of BUKS on NASDAQ, the Company is working with NASDAQ to implement a plan to maintain the bid price of the common stock in excess of $1.00. If approved, this amendment would allow the Board of Directors to implement a reverse split of up to ten shares for one share. The Board deems it advisable and recommends to the shareholders that they adopt such an amendment. A proxy outlining the terms of the amendment will be sent to the Company's shareholders following approval of the proxy by the Securities and Exchange Commission. Management Comments: "The Board of Directors determined that requesting the authority to reverse split the common stock is an effective and reasonable method to safeguard the NASDAQ listing and the interests of our shareholders. Our common stock is currently selling at or below book value. We believe that there a number of significant events that could happen in the near future that would negate ne·gate tr.v. ne·gat·ed, ne·gat·ing, ne·gates 1. To make ineffective or invalid; nullify. 2. To rule out; deny. See Synonyms at deny. 3. the need for any reverse split. However, the Board feels the NASDAQ listing is valuable to the shareholders and the Company for future liquidity and capital formation. The Board considers a reverse split as the last resort to maintain the listing and feels a backup strategy should be in place should the need arise. Considerable detail will be provided to each shareholder in the proxy materials Proxy Materials Documents regulated by the Securities & Exchange Commission in which a public company outlines its methods and procedures. These documents are used to inform shareholders and solicit votes for corporate decisions, such as the election of directors and other after review and approval by the SEC. We expect the shareholder approval process to take approximately 60 days to complete," commented Clark D. Stewart, President. Forward-Looking Information: The information set forth above may include "forward-looking" information as outlined in the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. The Cautionary Statements, filed by the Company as Exhibit 99 to the Company's Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. , are incorporated herein by reference and investors are specifically referred to such Cautionary Statements for a discussion of factors which could affect the Company's operations and 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. contained herein. Our Business: Butler National Corporation operates in the Aerospace and Services business segments. The Services segment includes electronic monitoring of water pumping The pumping of water is a basic and practical technique, far more practical than scooping it up with one's hands or lifting it in a hand-held bucket. This is true whether the water is drawn from a fresh source, moved to a needed location, purified, or used for irrigation, washing, or stations, temporary employee services and management services for Indian gaming enterprises. Aerospace includes the manufacture of switching equipment for Boeing and structural modification of business aircraft. |
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