ModusLink Global Solutions, Inc. Announces Reverse/Forward Stock Splits

ModusLink Global Solutions, Inc. (NASDAQ: MLNK) (the “Company” or “ModusLink”) announced today that the Company will effect a reverse split of the Company’s common stock, par value $0.01 per share, immediately followed by a forward stock split of the Company’s common stock, which are intended to reduce the costs associated with servicing stockholder accounts holding relatively small numbers of shares of the Company’s common stock. The ratio for the reverse stock split as approved by the Company’s Board of Directors, and by the Company’s Stockholders at the December 9, 2014 Annual Meeting of Stockholders, is fixed at 1-for-100 and the ratio for the forward stock split is fixed at 100-for-1. The reverse and forward stock splits are expected to be effective as of 5:00 p.m. and 5:01 p.m. Eastern Time, respectively, on January 16, 2015, subject to final approval by NASDAQ, with a market effective date of January 20, 2015.

The Company will arrange for the disposition of fractional share interests of stockholders who hold fewer than 100 shares immediately prior to the Reverse Split by having the Company’s transfer agent aggregate such fractional share interests and sell the shares of Common Stock resulting from such aggregation (the “Aggregated Shares”) in open market transactions following the effectiveness of the Forward Split. The Company’s transfer agent will, following completion of the sale of all of the Aggregated Shares, pay to each registered stockholder who holds fewer than 100 shares of Common Stock immediately prior to the Reverse Split an amount, for each share of Common Stock held immediately prior to the Reverse Split, equal to the average per-share price received in the sale of the Aggregated Shares. The Company’s transfer agent will limit the effect of the sales of Aggregated Shares on the market price of the Company’s common stock by limiting its daily sales to 25% or less of the trailing 30-day average trading volume preceding the effective date.

Stockholders holding 100 or more shares of the Company’s common stock immediately prior to the effective time of the reverse stock split will not receive a cash payment, but will continue to hold the same number of shares after completion of the reverse/forward stock split as they held immediately prior to the reverse stock split. The Company expects both registered and beneficial stockholder accounts holding less than 100 shares of common stock will be converted to cash pursuant to the procedures described in the paragraph immediately above. However, persons that beneficially hold shares through a nominee (such as a broker or bank) will be advised to contact their nominee to be informed of any procedures such holders may need to follow in order to ensure the same treatment as registered stockholders.

The Company expects that approximately 1,000,000 of its outstanding shares of common stock will be fractionalized as a result of the reverse stock split and subsequently converted into the right to receive a cash payment in exchange for each pre-reverse stock split share as described above.

For more information regarding the reverse/forward stock split, please refer to the Proxy Statement relating to the Company's stockholder meeting held on December 9, 2014 that was previously mailed to the Company’s stockholders.

About ModusLink
ModusLink Global Solutions, Inc. (MLNK), executes comprehensive supply chain and logistics services that are designed to improve clients’ revenue, cost, sustainability and customer experience objectives. ModusLink is a trusted and integrated provider to the world’s leading companies in consumer electronics, communications, computing, medical devices, software and retail. The Company’s operations are supported by more than 25 sites across North America, Europe, and the Asia/Pacific region. For details on ModusLink’s flexible and scalable solutions visit www.moduslink.com and www.valueunchained.com, the blog for supply chain professionals.

This release contains forward-looking statements, which address a variety of subjects. All statements other than statements of historical fact, including without limitation, those with respect to the Company’s goals, plans, expectations and strategies set forth herein are forward-looking statements. The following important factors and uncertainties, among others, could cause actual results to differ materially from those described in these forward-looking statements: the Company’s ability to execute on its business strategy, including any cost reduction plans and the continued and increased demand for and market acceptance of its services, which could negatively affect the Company’s ability to meet its revenue, operating income and cost savings targets, maintain and improve its cash position, expand its operations and revenue, lower its costs, improve its gross margins, reach and sustain profitability, reach its long-term objectives and operate optimally; failure to realize expected benefits of restructuring and cost-cutting actions; the Company’s ability to preserve and monetize it’s net operating losses; difficulties integrating technologies, operations and personnel in accordance with the Company’s business strategy; client or program losses; demand variability in supply chain management clients to which the Company sells on a purchase order basis rather than pursuant to contracts with minimum purchase requirements; risks inherent with conducting international operations; and increased competition and technological changes in the markets in which the Company competes. For a detailed discussion of cautionary statements that may affect the Company’s future results of operations and financial results, please refer to the Company’s filings with the Securities and Exchange Commission, including the Company’s most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Forward-looking statements represent management’s current expectations and are inherently uncertain. The Company does not undertake any obligations to update forward-looking statements made by it.