Sonus Networks (Nasdaq: SONS), 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.
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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.
Contacts:
Patti Leahy, 978-614-8440
pleahy@sonusnet.com