CHANGZHOU, China, Dec. 17, 2010 /PRNewswire-Asia-FirstCall/ --
China Architectural Engineering, Inc. (Nasdaq: CAEI), a
self-developer of online games and a provider of high-end building
envelope architectural systems, today announced that the Company's
Board of Directors approved a one for four (1-for-4) reverse split
of the Company's common stock. The Board's approval of the
1-for-4 reverse stock split followed approval from the Company's
stockholders at its 2010 Annual Meeting of Shareholders held on
December 7, 2010.
The Company expects that the reverse stock split will come
effective at 12:01 am EST on
December 21, 2010. The new
CUSIP number for the Company's common stock after the effective
time of the reverse stock split will be 16937S 201.
The reverse stock split is expected to reduce the Company's
approximately 80.2 million issued and outstanding shares of common
stock to approximately 20 million shares. In further action,
the Board and stockholders approved a reduction in the number of
the Company's authorized common stock from 150 million shares to
100 million shares. Fractional shares will be "rounded up"
rather than redeem fractional shares with cash. The stock split
will not affect any stockholder's percentage ownership of CAE,
other than any nominal affect from rounding.
The reverse split is intended to allow the Company to maintain
its listing on the NASDAQ Stock Market. On July 1, 2010, the Company received notice from
The NASDAQ Stock Market that it was not compliance with the listing
standards of NASDAQ due to the trading price of its common stock
falling below the minimum $1.00 bid
price for 30 consecutive days, and that such continued
non-compliance would result in delisting of our common stock from
the NASDAQ trading market. The purpose of the reverse stock split
is to increase the per-share bid price such that to come into
compliance with the $1.00 minimum bid
price requirements of NASDAQ.
Stockholders of record as of the effective date of the reverse
stock split will be sent a transmittal letter from CAE's transfer
agent with instructions on how to exchange his or her
certificate(s) (Old Certificates) for certificates representing the
appropriate number of post-reverse stock split shares (New
Certificates). The Company's transfer agent will act as the
exchange agent in implementing the exchange of those certificates.
The transfer agent can be reached at the following:
Computershare Trust Company N.A.
250 Royall Street
Canton, MA 02021
Toll Free: (800) 962-4284
Outside the US: (781) 579-3120
Banks, brokers or other nominees are instructed to effect the
reverse stock split for their beneficial holders holding the shares
of common stock in "street name" in the same manner as registered
stockholders whose shares of common stock are registered in their
names. Since these banks, brokers or other nominees may have
different procedures than registered stockholders for processing
the reverse stock split, any stockholder who holds shares of common
stock with a bank, broker or other nominee and has any questions in
this regard are encouraged to contact their bank, broker or other
nominee.
About China Architectural Engineering
China Architectural Engineering, Inc. is a self-developer of
online games and provider of high-end building envelope
architectural systems. Through its subsidiary, Shanghai ConnGame
Network, the Company leverages its innovative game engines,
scalable development platforms, and accomplished production teams
to develop and operate MMORPGs. The first game "Warring State"
focuses on China's historic themes
and the second game "Revolution" focuses at Western fantasy style.
The Company also provides design, engineering, fabrication and
installation services of high-end curtain wall systems, roofing
systems, steel construction systems, and eco-energy systems. For
further information on China Architectural Engineering, Inc.,
please visit www.caebuilding.com.
Forward-Looking Statements
In addition to historical information, the statements set forth
above may include forward-looking statements that may involve risk
and uncertainties that could cause actual results to differ
materially from those in the forward-looking statements. Actual
results could differ materially from the expectations contained in
forward-looking statements as a result of risks and uncertainties,
including, but not limited to, the effect of the reverse stock
split on the trading price of the Company's stock; difficulties in
moving into the online gaming market; the Company's ability to
integrate the personnel and operations of the Company and ConnGame
that was acquired in the third quarter 2010; the Company's failure
to make required payments under the waiver agreement and ability to
negotiate with the bondholders for an extension; the effect of
dilution if the conversion price of the bonds are adjusted downward
due to the Company's failure to comply with the waiver; the
Company's ability to successfully and timely develop and
commercially launch its first MMORPG game; identification and
remediation of the Company's deficiencies and weaknesses in its
internal controls over financial reporting; ability to identify and
secure debt, equity, and/or other financing required to continue
the operations of the Company; reduction or reversal of the
Company's recorded revenue or profits due to "percentage of
completion" method of accounting and expenses; increasing
provisions for bad debt related to the Company's accounts
receivable; fluctuation and unpredictability of costs related to
our products and services; adverse capital and credit market
conditions; fluctuation and unpredictability of costs related to
the Company's products and services; expenses and costs associated
with its convertible bonds, regulatory approval requirements and
competitive conditions; and various other matters, many of which
are beyond our control. These and other factors that may result in
differences are discussed in greater detail in the Company's
reports and other filings with the Securities and Exchange
Commission.
Investor Contact:
Email: ir.caeinc@gmail.com
SOURCE China Architectural Engineering, Inc.