SCOTTSDALE, Ariz., Feb. 4, 2013 (GLOBE NEWSWIRE) -- iGO, Inc. (Nasdaq:IGOI) (the "Company") announced today that it intends to effect a reverse split of its common stock at a ratio of 1-for-12. The reverse stock split, which was approved by the Company's stockholders on January 25, 2013, will take effect at 11:59 p.m. Eastern Time on February 4, 2013. The stock will begin trading on a split-adjusted basis at the opening of markets on February 5, 2013.
As a result of the reverse stock split, every 12 shares of common stock issued and outstanding prior to the opening of trading on February 5, 2013 will be consolidated into one issued and outstanding share. No fractional shares of common stock will be issued as a result of the reverse stock split, and any fractional shares will be paid in cash. Proportional adjustments will be made to the number of shares of iGO, Inc.'s common stock issuable upon exercise or conversion of the Company's outstanding equity awards, as well as the applicable exercise price.
The reverse stock split is intended to increase the per share trading price of the Company's shares of common stock to satisfy the $1.00 minimum bid price requirement for continued listing on the NASDAQ Capital Market.
The Company also announced that it has implemented a number of cost-savings initiatives that have resulted in a reduction in its workforce and annual operating expenses.
"We believe executing a reverse stock split to help us maintain our Nasdaq listing is in the best interest of our shareholders," said Michael D. Heil, President and Chief Executive Officer of iGO, Inc. "In addition, we believe the cost-savings initiatives announced today will better align our cost structure with our current level of revenue. None of the cost-savings initiatives announced today will have any impact on our efforts to develop an integrated circuit based on iGO Green® technology."
Information for Stockholders
Once the reverse stock split has been effected, the Company's transfer agent will send a transmittal letter to all stockholders with instructions on how to exchange their pre-split shares for post-split shares.
If you hold shares in book-entry form, you will need to complete and return the transmittal letter to the transfer agent, and the transfer agent will send a transaction statement to your address of record indicating the number of post-split shares of common stock that you hold. If you are entitled to a payment in lieu of any fractional interest, the transfer agent also will mail a check to you at your registered address.
If you hold shares in certificate form or a combination of certificate and book-entry forms, the transmittal letter will include instructions for exchanging certificates representing pre-split shares for a statement of holdings of post-split shares and any payment of cash in lieu of fractional shares to which you are entitled. When you submit your certificate representing the pre-split shares, your post-split shares will be held electronically in book-entry form. We will no longer issue physical stock certificates unless you make a specific request for a share certificate representing your post-split shares.
STOCKHOLDERS SHOULD NOT DESTROY ANY STOCK CERTIFICATE(S) AND SHOULD NOT SUBMIT ANY CERTIFICATE(S) UNTIL REQUESTED TO DO SO.
About iGO, Inc.
iGO, Inc. offers a full line of innovative accessories for almost every mobile electronic device on the market. Whether a consumer wants to power, protect, listen to, share, cool, hold or connect to their device, iGO has the accessories they need. iGO is also a leader in developing eco-friendly power solutions based on its patented iGO Green® technology, which automatically reduces the wasteful and expensive standby, or "vampire," power consumed by electronic devices.
iGO is a registered trademark of iGO, Inc. All other trademarks or registered trademarks are the property of their respective owners.
This press release contains "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934. The words "believe," "expect," "anticipate," "should," and other similar statements of our expectation identify forward-looking statements. These forward-looking statements are based largely on management's expectations and involve known and unknown risks, uncertainties and other factors, which may cause the Company's actual results, performance or achievements, or industry results, to be materially different from any future results, performance or achievements expressed or implied by these forward-looking statements. Risks that could cause results to differ materially from those expressed in these forward-looking statements include, among others, our ability to expand and diversify our customer base; increased focus of consumer electronics retailers on their own private label brands; our ability to expand our revenue base and develop new products and product enhancements; fluctuations in our operating results because of: increases in product costs from our suppliers, our suppliers' ability to perform, the timing of new product and technology introductions and product enhancements relative to our competitors, market acceptance of our products, the size and timing of customer orders, our ability to effectively manage inventory levels, delay or failure to fulfill orders for our products on a timely basis, distribution of or changes in our revenue among distribution partners and retailers, our inability to accurately forecast our contract manufacturing needs, difficulties with new product production implementation or supply chain, product defects and other product quality problems, the degree and rate of growth in our markets and the accompanying demand for our products, our ability to expand our internal and external sales forces and build the required infrastructure to meet anticipated growth, and seasonality of sales; our ability to manage our inventory levels; decreasing sales prices on our products over their sales cycles; our failure to integrate acquired businesses, products and technologies; our reliance on and the risk relating to outsourced manufacturing fulfillment of our products, including potential increases in manufacturing costs; the negative impacts of product returns; design and performance issues with our products; liability claims; our failure to expand or protect our proprietary rights and intellectual property; intellectual property infringement claims against us; our ability to hire and retain qualified personnel; our ability to secure additional financing to meet our future capital needs; increased competition and/or reduced demand in our industry; our failure to comply with domestic and international laws and regulations; economic conditions, political events, war, terrorism, public health issues, natural disasters and similar circumstances; that our common stock could be delisted from the NASDAQ Capital Market; volatility in our stock price; concentration of stock ownership among our executive officers and principal stockholders; provisions in our certificate of incorporation, bylaws and Delaware law, as well as our stockholder rights plan, that could make a proposed acquisition of the Company more difficult; and dilution resulting from potential future stock issuances.
Additionally, other factors that could cause actual results to differ materially from those set forth in, contemplated by, or underlying these forward-looking statements are included in the Company's Quarterly Report on Form 10-Q for the quarter ended September 30, 2012 and the Company's Annual Report on Form 10-K for the year ended December 31, 2011 under the heading "Risk Factors." In light of these risks and uncertainties, the forward-looking statements contained in this press release may not prove to be accurate. The Company undertakes no obligation to publicly update or revise any forward-looking statements, or any facts, events, or circumstances after the date hereof that may bear upon forward-looking statements. Additionally, the Company does not undertake any responsibility to update you on the occurrence of unanticipated events which may cause actual results to differ from those expressed or implied by these forward-looking statements.
CONTACT: Tony Rossi Financial Profiles 310-478-2700 x13 firstname.lastname@example.orgSource:iGO, Inc.