Brake Headquarters USA, Inc. Announces Reverse Stock Split
20 January 1999
BRAKE HEADQUARTERS USA, INC. ANNOUNCES REVERSE STOCK SPLIT, EFFECTIVE JANUARY 29, 1999
LONG ISLAND CITY, N.Y.--January 19, 1999--Brake Headquarters USA, Inc. announced today that the Board of Directors approved effective January 29, 1999, a one (1) for three (3) reverse split of the Company's common stock.
The reverse split was authorized by shareholders at the Company's 1998 annual meeting, with implementation left to the discretion of the Board of Directors. The common stock will commence trading on January 29, 1999 at the adjusted price, giving effect to the reverse stock split. To denote the change, the stock symbol will have a letter D added as a fifth character, and for twenty (20) consecutive trading days, beginning January 29, 1999 shares of common stock will trade under the symbol BHQUD to indicate that the split has been effected.
The reverse split will reduce the number of common shares outstanding to about 3,600,000 from approximately 10,718,000 shares.
The reverse stock split was implemented, for among other things, in order to regain compliance with the NASDAQ Small Cap Market's minimum closing bid requirements, of at least $1.00. In order to maintain the listing of common stock on the NASDAQ, it will be required that shares of the stock maintain a minimum closing bid of at least $1.00 for ten (10) consecutive trading days following the split. The Company is scheduled to appear before a NASDAQ hearing panel on January 22, 1999, at which time it will seek an extension of time to become compliant, although there is no assurance that an extension will be granted.
Joseph Ende, President and CEO of Brake Headquarters USA, Inc. commented, "We effected the reverse split to retain our listing on NASDAQ, which we believe to be in the best interests of both the Company and our shareholders. Additionally, the adjustment of our stock price to a higher level should provide us with a better opportunity to attract institutional investors as shareholders. This will allow us to move forward with our strategic growth plan and to capitalize on opportunities afforded the Company by maintaining our listing on NASDAQ."
Founded in 1976, Brake Headquarters USA, Inc. is a rapidly growing manufacturer, wholesaler and distributor of automotive brake system products and other component parts for domestic and foreign cars and light trucks.
This release contains certain forward-looking statements that involve known and unknown risks, uncertainties. The Company's actual results may differ materially from the results discussed in the forward-looking statements. Factors that might cause or contribute to such differences include, but are not limited to intense competition; the Company's dependence on the automotive industry, which is cyclical; historical decreases in internal growth rates and historical losses, the Company's ability to manage growth; and other risks discussed in reports filed by the Company with the Securities and Exchange Commission from time to time.