Comtex News Network Inc. provides real-time financial and economic news via CustomWires and Comtex SmarTrends Alerts. The company also provides investors several proprietary products including a daily stock market letter (Morning Call) and selected stock news (SmarTrend Spotlights).
The company announced yesterday that its stockholders approved proposals which will result in a 1-for-1,000 reverse stock split of the company’s common stock and the cash-out of stockholders holding fewer than 1,000 shares. Comtex also announced that there are fewer than 200 stockholders of record, and as anticipated, the company will de-register its common stock with the SEC effective June 4, 2010, and become a private company.
As a result of the actions approved at the meeting, shareholders will receive one share of Comtex common stock for every 1,000 shares held. The company will not issue fractional shares and stockholders will receive cash in the amount of $0.29 per share in lieu of any fractional shares created by the reverse stock split. The price per share paid for the fractional shares represents a premium of approximately 30% over the average closing price of the common stock over the ten days prior to the original announcement of the meeting and the filing of the preliminary proxy statement with the SEC.
For more information on Comtex and the reverse stock split, please visit www.comtex.com.