Amerigon Shareholders Approve Reverse Stock Split
27 January 1999
Amerigon Shareholders Approve Reverse Stock Split; Post Split Trading to Begin January 28 Under New Symbol
IRWINDALE, Calif.--Jan. 27, 1999--Amerigon Incorporated announced that its shareholders overwhelmingly approved an amendment to its Articles of Incorporation effecting a 1 for 5 reverse stock split, which was approved by the Company's board of directors in December.
The Company's Class A common stock will begin trading on a post split basis effective January 28, 1999 under the new stock symbol ARGCD.
As previously announced, no fractional shares will be issued in connection with the reverse stock split, and shareholders will receive cash in payment for any fractional shares otherwise issuable.
Amerigon shareholders will be entitled to receive new stock certificates giving effect to the reverse split. Instructions on exchanging old stock certificates for new ones will be mailed to shareholders.
Pursuant to their terms, Class A warrants will be automatically adjusted to reflect the reverse stock split. Each warrant now represents the right to purchase shares at five times the warrant's previous exercise price and the right to purchase one-fifth the previous number of shares. A letter explaining the exact details of the adjustment will be sent to each warrant holder by mail.
Consummation of the reverse stock split reduced the number of outstanding shares of Class A common stock to approximately 2.51 million, including 600,000 escrowed shares which are expected to be converted to Class B common stock on April 30, 1999.
The reverse stock split is part of the Company's strategy to return to compliance with the $1.00 minimum bid price requirement for continued listing on the Nasdaq Small Cap Market.
The Company continues its transition from research and development into production, announcing in October that it had been selected by Johnson Controls to supply Amerigon's Climate Control Seat(tm) (CCS(tm)) system to be installed in seating systems for a leading North American auto manufacturer, starting in the 2000 model year. The Company also continues to receive positive responses from manufacturers around the world and announced on November 5, 1998, that it has received development contracts from leading European automotive companies to integrate the CCS(tm) system into their seats in preparation for possible launches in the 2001 and 2002 model years.
Amerigon, an emerging player in the global automotive industry, develops and markets proprietary high-technology products for the automotive OEM. In addition to the CCS(tm) system, the Company's products include its proprietary AmeriGuard(tm) Radar System to extend the driver's field of view in such vehicle applications as enhanced parking aids, back-up warning systems, and side object detection.
This release contains forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties. Such statements are based on management's current expectations and are subject to a number of factors and uncertainties which could cause actual results to differ materially from those described in the forward-looking statements, including, without limitation, demand for the Company's products, uncertainties in the development of high technology products, risks and delays in obtaining customer orders, technological change, competition and other risks and uncertainties that are detailed in the Company's Annual Report on Form 10-K and other reports filed by it with the Securities and Exchange Commission.