WESTFORD, Mass. -- Sonus Networks (NASDAQ:SONS, news, filings), a global leader in enabling and securing real-time communications, today announced that its previously disclosed 1-for-5 reverse stock split will be effective as of 5:00PM ET today, January 29, 2015. The Company's common stock will begin trading on a split-adjusted basis when the market opens on Friday, January 30, 2015. The new CUSIP number for the Company's common stock following the reverse stock split is 835916 503.
The reverse stock split affects all issued and outstanding shares of the Company's common stock, as well as the number of shares of common stock available for issuance under the Company's equity incentive plans. The reverse stock split will reduce the number of shares of the Company’s issued and outstanding common stock from approximately 250 million to approximately 50 million. In addition, the reverse stock split will effect a reduction in the number of shares of common stock issuable upon the exercise of stock options outstanding immediately prior to the reverse split, with a proportional increase in the exercise price. The par value of the Company's common stock will remain at $0.001 per share after the reverse stock split.
No fractional shares will be issued in connection with the reverse split. Stockholders who otherwise would be entitled to receive fractional shares because they hold a number of pre-reverse split shares of common stock not evenly divisible by five, will receive a cash payment (without interest) in lieu thereof equal to such fraction multiplied by the closing price per share of the Company's common stock on the NASDAQ Global Select Market on January 30, 2015.
American Stock Transfer and Trust Company (“AST”) is acting as the exchange agent for the reverse stock split. AST will provide instructions to stockholders regarding the process for exchanging their pre-split stock certificates for post-split stock certificates and receiving payment for any fractional interests. Additional information regarding the reverse stock split can be found in the Company's definitive proxy statement filed with the Securities and Exchange Commission on October 15, 2014.
Sonus Networks, Sonus, SONS, reverse stock split.
About Sonus Networks
Sonus enables and secures real-time communications so the world's leading service providers and enterprises can embrace the next generation of SIP and 4G/LTE solutions including VoIP, video, instant messaging and online collaboration. With customers in more than 50 countries and nearly two decades of experience, Sonus offers a complete portfolio of hardware-based and virtualized Session Border Controllers (SBCs), Diameter Signaling Controllers (DSCs), policy/routing servers and media and signaling gateways. For more information, visit www.sonus.net or call 1-855-GO-SONUS. Sonus is a registered trademark of Sonus Networks, Inc. All other company and product names may be trademarks of the respective companies with which they are associated.
Important Information Regarding Forward-Looking Statements
The information in this release may contain certain forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 regarding future events that involve risks and uncertainties. Although Sonus believes that its expectations are based on reasonable assumptions, readers are cautioned that these forward-looking statements are only predictions and are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. All statements other than statements of historical facts contained in this report are forward-looking statements. Our actual results may differ materially from those contemplated by the forward-looking statements. For further information regarding risks and uncertainties associated with Sonus’ business, please refer to the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors” sections of Sonus’ filings with the Securities and Exchange Commission. Any forward-looking statements represent Sonus' views only as of the date on which such statement is made, and should not be relied upon as representing Sonus' views as of any subsequent date. While Sonus may elect to update forward-looking statements at some point, Sonus specifically disclaims any obligation to do so, except as required by law.
For more information
- See more at: http://www.sonus.net/en/resources/press-releases/sonus-networks-announces-effectiveness-reverse-stock-split#sthash.Qbn4UI4d.dpuf