Donnkenny, Inc. Announces Board Recommendation to Shareholders to Approve a 1-For-4 Reverse Stock Split to Facilitate Continued NASDAQ Listing.Business Editors NEW YORK--(BUSINESS WIRE)--Feb. 28, 2000 Donnkenny, Inc. (Nasdaq:DNKY) today announced that the Company's Board of Directors was recommending to the Company's shareholders the approval of a one- for-four reverse stock split as part of its effort to maintain continued listing on the Nasdaq National Market. The reverse stock split recommendation will be put before the Company's shareholders at a special meeting of shareholders to be held on April 18, 2000. As a result of the proposed split, if the recommendation is approved by the Company's shareholders, each four shares of common stock applicable to shareholders on the date of the split will be converted into one share. 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. will be rounded up to the nearest whole number and no fractional shares or cash in lieu Cash In Lieu (CIL) In a typical exchange offer, "old" shares of the target company are exchanged for "new shares". of shares will be issued. The Company anticipates that if the reverse split is approved by the Company's shareholders on April 18, 2000, the split will take effect immediately thereafter. Donnkenny's Board of Directors is recommending this action to its shareholders in an effort to maintain Nasdaq National Market listing. One of the requirements for continued listing on the Nasdaq National Market is the maintenance of a bid price for the Company's shares of $1.00 or higher. During the last few months, the Company's bid price has fallen below $1.00. While it is anticipated that following the reverse stock split, the market value of the Company's shares will increase in inverse proportion an equality between a direct ratio and a reciprocal ratio; thus, See also: Inverse Donnkenny designs, manufactures, imports and markets a broad line of moderately-priced women's sportswear. Except for historical information contained herein, the statements in this release are forward-looking for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. and made pursuant to the 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. provisions of 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. 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. involve known and unknown risks and uncertainties that may cause the Company's actual results in future periods to differ materially from forecasted results. Those risks include a softening softening /sof·ten·ing/ (sof´en-ing) malacia. softening a change of consistency, with loss of firmness or hardness. of retailer or consumer acceptance of the Company's products or pricing pressures and other competitive factors. These and other risks are more fully described in the Company's 10-K and 10-Q filings with the Securities and Exchange Commission. |
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