Cyanotech Corporation Announces Reverse Split of Its Par Value $0.005 Common Stock and Temporary 30-day Change in Its Symbol from CYAN to CYAND.KAILUA KONA, Hawaii -- Cyanotech Corporation (Nasdaq:CYAN) announced today that the one for four reverse stock split of its par value $0.005 Common Stock (Symbol CYAN, Cusip No. 232437 20 2) has become effective. The reverse stock split was previously authorized au·thor·ize tr.v. au·thor·ized, au·thor·iz·ing, au·thor·iz·es 1. To grant authority or power to. 2. To give permission for; sanction: by the Company's Board of Directors and a Certificate of Change filed with the Secretary of State of Nevada. The Company's Common Stock, par value $0.02 per share, will begin trading on the Nasdaq Capital Market Originally called the NASDAQ Small Cap Market, NASDAQ announced a name change to the NASDAQ Capital Market on September 27, 2005. [1] The NASDAQ Capital Market exists for securities of smaller, less-capitalized companies (small caps) that do not qualify for at the opening of trading on Monday, November 6, 2006 under the Stock Symbol CYAND. This Stock Symbol will apply for 30 days only, and then change back to CYAN on December 5, 2006. New stock certificates issued as a result of the reverse split will bear Cusip No. 232437 30 1. The Company, through its transfer agent, Computershare Trust Company, Inc., will pay cash in lieu Cash In Lieu (CIL) In a typical exchange offer, "old" shares of the target company are exchanged for "new shares". of issuing fractional shares Fractional share Stocks amounting to less than one full share, usually resulting from splits, acquisitions, exchanges, or dividend reinvestment programs. fractional share Less than one share of stock, that is, one-third or one-half a share. based on the stock's Friday, November 3, 2006 closing price of $0.43 per share. As a result of the reverse stock split, stock certificates may be exchanged on the basis of one share of par value $0.02 common stock (Cusip No. 232437 30 1) for every four shares of par value $0.005 common stock (Cusip No. 232437 20 2). It is not necessary for stockholders to exchange their par value $0.005 Cyanotech Corporation stock certificates at this time. However, if stockholders wish to exchange their stock certificates for the new certificates, the Company will pay, on behalf of each stockholder, a one time exchange fee up to a maximum of $25. New par value $0.02 stock certificates will also be issued by the transfer agent when part of the old par value $0.005 shares are sold. Any fractional share in such transactions will be paid in cash. Instructions and exchange forms will be sent to stockholders in the coming weeks by the transfer agent. "Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " Statement under 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 Except for statements of historical fact, the statements in this press release are forward-looking. Such statements are subject to a number of risks and uncertainties that could cause actual results to differ materially from the statements made. These factors include, but are not limited to, general economic conditions, forecasts of sales in future periods, changes in sales levels to our largest customers, weather patterns, production problems caused by contamination, risks associated with the acceptance of new products, competition, foreign exchange fluctuations, government regulation, and other factors more fully detailed in the Company's Form 10-Q Form 10-Q See 10-Q. and annual 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. filings with the Securities and Exchange Commission. |
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