Avanex Corporation (NASDAQ:AVNX), a leader in telecommunication components that enable next-generation optical networks, today announced that its Board of Directors, pursuant to previously obtained stockholder authorization, approved a reverse split of its common stock at a ratio of 15-for-1, with a planned effective date of August 12, 2008. Accordingly, as of the effective date, each fifteen shares of issued and outstanding common stock and equivalents will be converted into one share of common stock. The reverse stock split will be effected by the filing of a Certificate of Amendment to the Company’s Certificate of Incorporation with the Secretary of State of the State of Delaware.
“Avanex is taking this action to encourage interest in our stock on the part of certain brokerage houses and institutional investors and to be in a better position to continue to meet the listing criteria for trading on the Nasdaq Stock Market,” said Giovanni Barbarossa, the Company’s Interim CEO. “Following the reverse split, our stock will likely trade at a higher nominal price level,” said Barbarossa.
Avanex stockholders will receive instructions from their broker or from Avanex’s transfer agent, Computershare, containing the appropriate procedures for turning in their old share certificates for new, post-split share certificates. Fractional stockholdings will be paid out in cash based on Avanex’s closing stock price on the effective date. Further information on the logistics regarding the reverse split can be obtained by contacting Avanex.
Avanex Corporation meets the needs of fiber optic communications networks for greater capacity, longer distance transmissions, improved connectivity, higher speeds and lower costs. Our solutions enable optical wavelength multiplexing, dispersion compensation, switching and routing, transmission, and amplification, and include network-managed subsystems. Avanex Corporation, incorporated in 1997, is headquartered in Fremont, California, and maintains facilities in New York, Florida, China, France, Italy, and Thailand. To learn more about Avanex Corporation, visit our Web site at: www.avanex.com.
This press release contains forward-looking statements, including statements regarding the timing of the Company’s reverse stock split, the performance of and interest in the Company’s stock following the reverse split and the ability of the Company to meet the Nasdaq’s listing criteria. Actual results could differ materially from those projected in or contemplated by the forward-looking statements. Factors that could cause actual results to differ include unanticipated issues that would impact the expected timing of the Company’s reverse stock split, the existing and expected marketability and liquidity of the common stock and prevailing market conditions and the likely effect of a reverse split on the market price of the common stock. Please refer to the risk factors contained in the Company’s SEC filings including the Company’s Annual Report on Form 10-K filed with the SEC on Sept. 7, 2007, Quarterly Report on Form 10-Q filed with the SEC on May 2, 2008 and subsequent filings with the SEC.
Brooke Deterline, 510-897-4188 (Investor Relations)
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