Minorplanet Systems USA, Inc. to Effect a 1-for-5 Reverse Stock Split
RICHARDSON, Texas--Nov. 1, 20033, 2003--Minorplanet Systems USA, Inc. , a leading provider of telematics-based management solutions for commercial fleets, today announced that its stockholders approved (via a majority written consent) a one-for-five reverse stock split of the Company's common stock. The reverse split will take effect before trading begins on Dec. 3, 2003. The reverse split will reduce the Company's outstanding shares of common stock to approximately 9,669,832, from approximately 48,349,161 shares outstanding.The Company will be notifying all of its current holders of common stock of the need to send their share certificates to the Company's transfer agent, Mellon Investor Services LLC, so that new certificates representing whole shares of post reverse split common stock can be issued. No fractional shares of common stock will be issued and each holder of common stock who would otherwise be entitled to a fraction of a share of new common stock upon surrender of their old certificates will be entitled to receive a cash payment for their fractional shares.
The purpose of the reverse stock split is to facilitate the continued listing of our common stock on the Nasdaq SmallCap Market. On Oct. 8, 2003, the Company received notice from the Nasdaq Staff indicating that the Company has 90 calendar days, or until Jan. 6, 2004, to demonstrate 10 consecutive trading days whereby the minimum bid price closes at $1.00 per share or more. There can be no assurance that the closing bid price for our common stock will remain at least $1.00 for 10 consecutive trading days even after we effect the one-for-five reverse stock split.
About Minorplanet Systems USA, Inc.
Minorplanet Systems USA, Inc. (minorplanetusa.com) markets, sells and supports Vehicle Management Information(TM) (VMI(TM)), a state-of-the-art fleet management solution that contributes to higher customer revenues and improved operator efficiency. VMI combines the technologies of the global positioning system (GPS) and wireless vehicle telematics to monitor vehicles, minute by minute. The company also markets, sells and supports a customized, GPS-based fleet management solution for large fleets like SBC Communications, Inc., which has approximately 34,000 installed vehicles now in operation.
Headquartered in Richardson, Texas, Minorplanet currently markets its VMI fleet management technology in the Dallas/Fort Worth, Houston, Atlanta, Los Angeles and Austin, Texas, markets, with plans for expanding into other metro markets in the future.
Legal notice to investors: Certain matters discussed in this press release are "forward-looking statements" intended to qualify for the safe harbors from liability established by the Private Securities Litigation Reform Act of 1995. These forward-looking statements can generally be identified as such because the context of the statement will include words such as the company "expects," "believes," "anticipates" or words of similar import. Similarly, statements that describe the company's future plans, objectives or goals are also forward-looking statements.
Such forward-looking statements generally involve known and unknown risks, uncertainties and other facts, which may cause the actual results, performance or achievements of the company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the following: ability to remain listed on the Nasdaq Small Cap Market; ability to raise capital; acceptance of new product offerings; ability to achieve and maintain margins during periods of rapid expansion; availability of capital to fund expansion; market conditions; general economic and business conditions; business abilities and judgment of management and personnel; and changes in business strategy and competition. For a listing of risks applicable to the future prospects of the company, please refer to the reports filed with the SEC, such as recent 10-K and 10-Q Reports.
"Minorplanet" is a federally registered trademark and service mark of Minorplanet Limited. "Vehicle Management Information," "VMI," "Minorplanet Systems USA" and orb logotype are trademarks and service marks of Minorplanet Limited.