AUSTIN, TX--(Marketwire - Nov 5, 2012) - Active Power (NASDAQ: ACPW), manufacturer of UPS (uninterruptible power supply) systems and modular infrastructure solutions, announced that its board of directors has authorized its management to obtain the required shareholder and other approvals and prepare and file the necessary documents to effect a 5-for-1 reverse split of its outstanding and authorized common and preferred stock.
The reverse stock split is subject to the approval of Active Power's shareholders. Active Power filed a preliminary proxy statement with the SEC today for a special meeting of shareholders at which time such approval will be sought. The date and other details of the special meeting will be communicated to shareholders at a later date. Active Power currently expects to complete the reverse split by the end of the fourth quarter of 2012.
"Our intent is to continue to trade on the NASDAQ Capital Market," said Doug Milner, president and CEO, at Active Power. "To that end and after careful evaluation of our options, we have decided to pursue a reverse stock split to regain compliance with the minimum bid price requirement of the NASDAQ Capital Market. In addition to sustaining our NASDAQ listing, we believe a higher share price resulting from a reverse stock split will help broaden our shareholder base by increasing our appeal to institutional investors and as a result enhance long-term shareholder value."
Additional Information Regarding Proposed Transaction
The company anticipates a reverse stock split would raise the per share trading price of Active Power common stock to regain compliance with the $1.00 per share minimum bid price requirement for continued listing on the NASDAQ Capital Market. As previously disclosed, to maintain the listing of its common stock on the NASDAQ Capital Market, on or before Dec. 17, 2012, Active Power's common stock must have a minimum closing bid price of $1.00 per share for a minimum of 10 prior consecutive trading days. There can be no assurance a reverse stock split will have the desired effect of raising the closing bid price of Active Power common stock to enable the company to meet this requirement.
Active Power has filed a preliminary proxy statement with the SEC in connection with the reverse split. This press release is not a solicitation of shareholders or their votes on the proposed reverse split. Active Power plans to file definitive proxy materials and other information concerning the proposed transaction with the SEC. Active Power urges investors to review the proxy statement and other information filed with the SEC because it contains important information. These documents are available without charge on the SEC web site at www.sec.gov. A free copy of the definitive proxy statement may also be obtained from Active Power through its investor relations contacts. Investors should read the proxy statement carefully before making any voting decision.
About Active Power
Founded in 1992, Active Power (NASDAQ: ACPW) designs and manufactures continuous power solutions and critical backup power systems that enable datacenters and other mission critical operations to remain 'on' 24 hours a day, seven days a week. Active Power solutions are intelligently efficient, inherently reliable and economically green, providing environmental benefits and energy and space efficiencies to customers' financial benefit. The company's products and solutions are built with pride in Austin, Texas, at a state-of-the-art, ISO 9001:2008 registered manufacturing and test facility. Global customers are served via Austin and three regional operations centers located in the United Kingdom, Germany, and China, supporting the deployment of systems in more than 40 countries. For more information, visit www.activepower.com.
Cautionary Note Regarding Forward-Looking Statements
This release may contain forward-looking statements that involve risks and uncertainties. Any forward-looking statements and all other statements that may be made in this news release that are not historical facts are subject to a number of risks and uncertainties, and actual results may differ materially. Specific risks include whether shareholder approval of the reverse stock split can be obtained and the timing of such approval, the actual price of the company's common stock following any approval of the stock split, and the company's ability to timing comply with the listing requirements of the NASDAQ Capital Market. Please refer to Active Power filings with the Securities and Exchange Commission for more information on the risk factors that could cause actual results to differ.
Active Power and CleanSource are registered trademarks of Active Power, Inc. The Active Power logo and PowerHouse are trademarks of Active Power, Inc. All other trademarks are the properties of their respective companies.
SOURCE: Active Power, Inc.