MILPITAS, Calif., Feb. 22 /PRNewswire-FirstCall/ -- Sipex Corporation
(OTC: SIPX.PK) today announced that it has filed an Amendment to its
Certificate of Incorporation to affect a previously approved reverse stock
split on a one for two (1:2) basis, which will take effect tomorrow,
Friday, February 23, 2007 at 1:31 p.m. Pacific Standard Time.
As a result of the reverse stock split, each two shares of our
currently issued and outstanding common stock as of the close of business
on February 23, 2007 will be automatically converted into and reconstituted
as one share of new common stock. The number of shares of Sipex's common
stock issued and outstanding after this reverse split will therefore be
reduced from approximately 37,107,586 shares to approximately 18,553,793
shares post reverse stock split, as of the end of February 23, 2007. The
number of shares of common stock issuable upon exercise of our outstanding
options and warrants, or upon conversion of our outstanding senior secured
convertible promissory notes will also be reduced proportionately. No
fractional shares will be issued in connection with the reverse stock
split. Any fractional shares that result from the reverse stock split of
outstanding shares will be exchanged for cash at a value of $4.613 per
share, the average of the closing prices of our common stock, for the ten
trading days ended February 15, 2007. The Company is undertaking this
reverse split to meet the NASDAQ Global Market minimum $5 per share listing
requirement. If the Company's stock then stays above $5 per share for 90
consecutive trading days, the Company will be eligible for listing.
No additional action on the part of any stockholder will be required in
order to affect the reverse stock split.
Ralph Schmitt, Chief Executive Officer of the Company, stated, "We
expect that 2007 will be a significant year for Sipex. A share
consolidation was necessary to meet the initial listing requirements of the
NASDAQ Global Market. While our stock has appreciated nicely over the past
year, we need to ensure that there is a solid timetable for this event. It
is important to have the best possible opportunity for our shareholders to
obtain value in their investment in our company."
About Sipex Corporation
Sipex Corporation is an analog semiconductor company that addresses
standard linear and application specific standard products (ASSP) for
customer systems that are primarily targeted at the consumer, networking
and industrial markets. The products are categorized into three synergistic
areas of power management, interface and optical storage. Sipex is a global
company with operations in Asia, Europe and North America. It is the
mission of the company to create innovative analog products that enable
customers to produce differentiated products. For more information about
Sipex, visit http://www.sipex.com.
For additional information, contact:
Clyde Ray Wallin, Chief Financial Officer
Tel: 408-934-7500
Fax: 408-935-7678
Email: rwallin@sipex.com
SOURCE Sipex Corporation
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Related links:
http://www.sipex.com/
http://www.prnewswire.com/comp/111683.html/
CONTACT:
Clyde Ray Wallin, Chief Financial Officer of
Sipex Corporation, +1-408-934-7500, or fax, +1-408-935-7678, or
rwallin@sipex.com
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