Egghead.com Board of Directors Authorizes Reverse Stock Split
Action Designed to Enhance Growth Opportunities and
Reduce Risk of Nasdaq Delisting
MENLO PARK, Calif., June 18 --
Egghead.com(R), Inc. (Nasdaq: EGGS), a leading Internet direct marketer of
technology and related products, today announced that its Board of Directors
has authorized a reverse stock split, subject to shareholder approval. The
Company anticipates the reverse split to be in the range of 1:5 to 1:10.
"This action is part of a strategic plan to enhance our appeal to a wider
audience of potential investors and help us attract additional capital, which
would in turn strengthen our working capital position and enable us to pursue
acquisition opportunities should we so choose," said Jeff Sheahan, president
and CEO of Egghead.com. "In addition, we believe it will reduce the risk of a
potential Nasdaq delisting."
The company has retained Roth Capital Partners, LLC to assist in its
private capital raising efforts.
About Egghead.com
Egghead.com (Nasdaq: EGGS) is a leading Internet direct marketer of
technology and related products. With an emphasis on Small- to Medium-sized
Business (SMB) customers, Egghead.com offers a wide range of products from
computer hardware and software, consumer electronics and office products, to
sporting goods and vacation packages. Its Clearance, After Work and Auction
formats offer bargains on excess and closeout goods and services. Egghead.com
combines broad selection, low prices, and excellent service to provide an
outstanding online shopping experience for businesses and consumers.
Egghead.com is located on the Internet at http://www.egghead.com .
Egghead and Egghead.com are registered trademarks of Egghead.com, Inc.
This press release contains "forward-looking" statements, including
Egghead.com`s intention to implement a reverse stock split. Statements in
this release are based on information available at the time of this release
and Egghead.com assumes no obligation to update them. The statements are not
guarantees of future performance and actual results could differ materially
from current expectations as a result of many factors. For example:
shareholder approval of the reverse stock split might be denied; the company
may be unable to obtain new funding on favorable terms or at all; and the
company`s common stock may be delisted from the Nasdaq National Market. These
and other risks and uncertainties associated with the company`s business are
detailed in its most recent Annual Report on Form 10-K and Quarterly Report on
Form 10-Q, which are on file with the SEC and available through http://www.sec.gov .
CONTACT:
Joanne Sperans Hartzell
Egghead.com
650-470-2713
jhartzell@egghead.com
Lillian Armstrong or Kirsten Chapma
Lippert-Heilshorn & Associates
415-433-3777
kchapman@lhai.com,
Back...
