The Auto Channel
The Largest Independent Automotive Research Resource
The Largest Independent Automotive Research Resource
Official Website of the New Car Buyer

Brake Headquarters USA, Inc. Announces Reverse Stock Split

10 February 1999

Brake Headquarters USA, Inc. Announces Reverse Stock Split, Effective February 19, 1999

    LONG ISLAND CITY, N.Y.(BUSINESS WIRE)--Feb. 9, 1999--Brake Headquarters USA, Inc. announced today that the Board of Directors approved effective February 19,1999, a one (1) for three (3) reverse split of the Company's common stock.
    On January 28, 1999, Brake Headquarters announced that it was granted a temporary exception by Nasdaq, during which time the Company's common stock would continue to be listed for trading on the Nasdaq SmallCap Market, even though as of that date, they did not meet the minimum bid price requirement. Under the terms of the temporary exception, on or before March 10, 1999 the Company's common stock is required to maintain a closing bid price of at least $1.00 for a minimum of ten (10) consecutive trading days. The reverse stock split was effected at this time in order to attain this requirement.
    The common stock will commence trading on February 19, 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 February 19, 1999 shares of common stock will trade under the symbol BHQCD to indicate that the split has been effected, and the letter U will be removed, at least temporarily. During this time, the letter C will continue to be included in the symbol to denote that it is still being listed for trading on the Nasdaq SmallCap Market, under the terms of the exception. In the event the Company is deemed to have met the terms of the exception, it shall continue to be listed on The Nasdaq SmallCap Market. The Company believes that it can meet the conditions, however, there can be no assurance that it will do so. If at some future date the Company's securities should cease to be listed on The Nasdaq SmallCap Market, they may continue to be listed on the OTC-Bulletin Board.
    The reverse split will reduce the number of shares of common stock outstanding to about 4 million from approximately 12 million shares.
    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 which involve known and unknown risks, uncertainties, and other factors not under the Company's control which may cause actual results, performance, and achievements of the Company to be materially different from the results, performance or expectations of the Company. These factors may 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; the Company's ability to manage growth; and other risks detailed in the Company's periodic filings with the Securities and Exchange Commission.