SAN JOSE, Calif.–(BUSINESS WIRE)–
Echelon Corporation (ELON) today announced that, at a special meeting of stockholders held on November 17, 2015, its stockholders voted to approve a 1-for-10 reverse stock split of the Company’s issued and outstanding shares of common stock, together with a corresponding reduction in the total number of shares of authorized stock.
Upon the effectiveness of the reverse stock split, each 10 shares of issued and outstanding Echelon common stock will be converted into 1 share of Echelon common stock, and if applicable, cash in lieu of fractional shares that would otherwise have been issued. The reverse split will reduce the number of shares of Echelon’s outstanding common stock from approximately 44.1 million shares to approximately 4.1 million shares; it will also reduce the authorized number of shares of the Company’s stock from 100 million to 10 million.
The reverse split is intended to become effective on December 7, 2015 and the Company’s split-adjusted common shares are expected to begin trading on the NASDAQ Capital Market on December 8, 2015. Stockholders who have existing stock certificates will receive written instructions by mail from the Company’s transfer agent, Registrar and Transfer Company. Stockholders who hold their shares in brokerage accounts or “street name” are not required to take any action to effect the exchange of their shares. Such stockholders will be contacted by their brokers with instructions.
Additional information about the reverse stock split can be found in the Echelon’s Definitive Proxy Statement on Schedule 14A, filed with the Securities and Exchange Commission on September 29, 2015. The primary purpose of the reverse stock split is to bring the Company back into compliance with and maintain the minimum bid listing requirement of the NASDAQ Global Market.