Niagara Corporation Effects Stock Splits to Ensure Retention of Deregistered Status
January 03 2005 - 7:11AM
PR Newswire (US)
Niagara Corporation Effects Stock Splits to Ensure Retention of
Deregistered Status NEW YORK, Jan. 3 /PRNewswire-FirstCall/ --
Niagara Corporation (OTC:NIAG.PK) announced today that at the close
of business on December 31, 2004 it completed a reverse stock split
in a ratio of 1-for-200 which was immediately followed by a forward
stock split in a ratio of 200-for-1. These stock splits were
effected in order to ensure that the Company had less than five
hundred holders of record at year-end which, as a result, will
allow Niagara to maintain its deregistered status and avoid the
increased burdens associated with operating as a registered public
company. By remaining deregistered, Niagara expects to save in
excess of $2,500,000 initially and a minimum of $750,000 per year
going forward. Niagara stockholders who owned 200 or more shares
immediately prior to the stock splits continue to own the same
number of shares of the Company, and the combined effect of the
reverse/forward stock splits had no effect on their holdings of
Niagara common stock. Niagara stockholders who owned fewer than 200
shares at the time of the stock splits will receive cash in
exchange for their fractional interests in an amount based on the
average of the last sales price of Niagara common stock as reported
on the Pink Sheets for the ten trading days ending December 31,
2004, which was $ 8.47 per share. The Company will shortly be
sending transmittal materials to its stockholders to enable them to
either receive cash for their fractional interests or to exchange
their old share certificates for new share certificates. The
reverse/forward stock splits will ensure that Niagara will continue
to maintain its deregistered status and retain the substantial
benefits of deregistration, including avoiding the substantial
costs and burdens of complying with the Sarbanes-Oxley Act of 2002
and related SEC and Nasdaq rules. This release contains certain
"forward-looking statements" made pursuant to the "safe-harbor"
provisions of the Private Securities Litigation Reform Act of 1995.
These statements involve known and unknown risks, uncertainties and
other factors, many of which are beyond the control of the Company,
that may cause the Company's actual results and estimates of cost
savings to be materially different from those expressed or implied
by such statements. Such risks, uncertainties and other factors
include those described in the Company's Annual Report on Form 10-K
for the year ended December 31, 2003. The forward-looking
statements made herein are only made as of the date of this
release, and the Company undertakes no obligation to publicly
update such forward-looking statements to reflect subsequent events
or circumstances. DATASOURCE: Niagara Corporation CONTACT: Michael
Scharf, CEO, Niagara Corporation, +1-212-317-1000 Web site:
http://www.niag.com/
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