General Magic Files Preliminary Proxy Materials.Business Editors/High-Tech Writers SUNNYVALE, Calif.--(BUSINESS WIRE)--May 23, 2002 General Magic, Inc. (Nasdaq:GMGC) today announced that it has filed preliminary 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 for the company's 2002 annual meeting and stockholder vote. In addition to regular annual meeting business, General Magic stockholders will be asked to vote to approve a reverse stock split of the company's common stock. The proxy calls for stockholders to vote on a proposal to approve an amendment to General Magic's Certificate of Incorporation certificate of incorporation n. some states issue a certificate to prove a corporation's existence upon the filing of Articles of Incorporation. In most states the Articles are sufficient proof. , which will, upon filing, affect a reverse split of General Magic's outstanding common stock at an exchange ratio of no less than 1-for-8 and no more than 1-for-14. The amendment will also reduce the number of authorized shares Authorized shares Number of shares authorized for issuance by a firm's corporate charter. of common stock disproportionately dis·pro·por·tion·ate adj. Out of proportion, as in size, shape, or amount. dis  pro·por from the reverse split from 200,000,000 to 50,000,000 shares, which will result in a net increase in the number of authorized shares of common stock, and grant the Board of Directors the authority to file such amendment at any time prior to the 2003 Annual Meeting of Stockholders. In the proxy materials, the company explains that the primary reasons for seeking approval for a reverse stock split are to seek to (1) increase the trading price Trading price The price at which a security is currently selling. of the company's common stock in order to seek to maintain its eligibility for listing on The Nasdaq Stock Market Nasdaq stock market The first electronic stock market listing over 5000 companies. The Nasdaq stock market comprises two separate markets, namely the Nasdaq National Market, which trades large, active securities and the Nasdaq Smallcap Market that trades emerging growth companies. , and (2) broaden the market for the company's common stock to provide the company with more flexibility to seek to procure To cause something to happen; to find and obtain something or someone. Procure refers to commencing a proceeding; bringing about a result; persuading, inducing, or causing a person to do a particular act; obtaining possession or control over an item; or making a person additional equity financing Equity Financing The act of raising money for company activities by selling common or preferred stock to individual or institutional investors. In return for the money paid, shareholders receive ownership interests in the corporation. in the future as and when the need arises. Stockholders of record on May 8, 2002 will be asked to vote at General Magic's 2002 Annual Meeting in Sunnyvale, Calif. on Friday, June 28, 2002. About General Magic General Magic is a leading voice infrastructure company that provides software and supporting voice dialog design and hosting services that enable companies to quickly and efficiently provide anytime, anywhere access to information and services over the telephone. General Magic's VoiceXML-based solutions enable businesses to easily integrate voice access into enterprise applications using a broad selection of speech recognition technologies and telephony Meaning "sound over distance," it refers to electronically transmitting the human voice. In the beginning, telephony dealt only with analog signals in the circuit-switched networks of the telephone companies. interfaces. These solutions help businesses improve customer relations, deliver value-added service A value-added service (VAS) is a telecommunications industry term for non-core services or, in short, all services beyond standard voice calls and fax transmissions. and provide unlimited access to content. General Magic is headquartered in Sunnyvale, Calif. For additional information, visit http://www.generalmagic.com. General Magic notes that this press release contains 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 and other factors that may cause industry trends, or actual results, performance or achievement to be materially different from any future trends, results, performance or achievements expressed or implied by these statements. These include, among others, risks and uncertainties concerning the adequacy of the company's financial resources to execute its business plan; market acceptance of the company's voice application products and services; the risk that the company's stock may be delisted from the Nasdaq Stock Market, the company's ability to generate sufficient revenues from its products and services to operate profitably; the company's ability to attract, retain and motivate key technical, sales, marketing and management personnel; the ability of the company to establish and maintain relationships with businesses that have high volume customer interactions, and to establish alliances with companies that offer technology solutions for such businesses; the challenges inherent in the development, delivery and implementation of complex technologies; and the company's ability to respond effectively to competitive developments. These and other risks and uncertainties are detailed in General Magic's filings made with the Securities and Exchange Commission on Forms 10-K, 10-Q and 8-K. General Magic and magicTalk are trademarks of General Magic, Inc., which may be registered in some jurisdictions. |
|
||||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion