IRVINE, Calif., Dec. 23, 2021 /PRNewswire/ -- DecisionPoint Systems, Inc. (OTCQX: DPSI), has completed the previously announced reverse stock split of its outstanding shares of common stock at a ratio of 1-for-2. The number of authorized shares will remain unchanged at 50 million shares. Trading of the company's common stock on OTCQX will continue on a post-split basis, and the common stock began trading on a post-split basis on December 20, 2021, under the temporary trading symbol DPSID and under the new CUSIP number 24345A 507. The trading symbol is expected to revert back to DPSI on or about January 20, 2022.
The company had previously disclosed that, on August 24, 2021, holders of a majority of the company's outstanding shares of common stock had consented to a possible reverse stock split and granted the board the authority to determine the exact split ratio, within a specified range, at any time prior to June 30, 2022. Following that approval, the board determined to effect the reverse stock split at a ratio of 1-for-2. The company filed an amendment to its certificate of incorporation to effect the reverse stock split, which was accepted by the State of Delaware on December 13, 2021.
As a result of the reverse stock split, every two shares of DPSI common stock issued and outstanding were automatically combined into one share of DPSI common stock. This reduced the number of outstanding shares of DPSI common stock from approximately 14.0 million to approximately 7.0 million. Outstanding equity-based awards were proportionately adjusted. "Decision Point is pursuing an uplisting to a major exchange, hence the reverse split," said Steve Smith, Chief Executive Officer.
No fractional shares were issued in connection with the reverse stock split. Stockholders that would hold a fractional share as a result of the reverse stock split will be rounded up to one share.
The reverse stock split is intended to enable the company to help facilitate several important corporate objectives, including enabling the company to satisfy the minimum bid price requirement in connection with a potential application to a stock exchange.
The company's transfer agent, Continental Stock and Transfer & Trust Company, is acting as an exchange agent for the reverse stock split. Stockholders holding pre-split shares electronically in book-entry form will not be required to take any action to receive post-split shares. Stockholders holding physical stock certificates will receive a letter of transmittal, requesting that the physical stock certificates be returned in order to exchange them for electronic book-entry shares in Direct Registration System ("DRS") format. Stockholders holding common stock in "street name" will receive instructions from their brokers.
About DecisionPoint Systems, Inc.
DecisionPoint Systems Inc. delivers mobility-first managed service and integration solutions to healthcare, supply chain, and retail customers, enabling them to make better and faster decisions in the moments that matter—the decision points. Our mission is to help businesses consistently deliver on those moments—accelerating growth, improving worker productivity, and lowering risks and costs.
For more information about DecisionPoint Systems, Inc., visit www.decisionpt.com.
This press release contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995 that are based on management's beliefs and assumptions and on information currently available to management. These statements involve risks, uncertainties and other factors that may cause actual results, levels of activity, performance or achievements to be materially different from the information expressed or implied by forward-looking statements. Forward-looking statements in this press release may include statements about our plans to obtain funding for our current and proposed operations and potential acquisition and expansion efforts; the ultimate impact of the COVID-19 pandemic, or any other health epidemic, on our business, our clientele or the global economy as a whole; debt obligations of the company; our general history of operating losses; our ability to compete with companies producing products and services; the scope of protection we are able to establish and maintain for intellectual property rights covering our products and technology; the accuracy of our estimates regarding expenses, future revenue, capital requirements and needs for additional financing; our ability to develop and maintain our corporate infrastructure, including our internal controls; our ability to develop innovative new products; and our financial performance. In addition, statements that "we believe" and similar statements reflect our beliefs and opinions on the relevant subject. These statements are based upon information available to us as of the date of this press release, and while we believe such information forms a reasonable basis for such statements, such information may be limited or incomplete, and our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all potentially available relevant information. These statements are inherently uncertain and investors are cautioned not to unduly rely upon these statements. We qualify all of our forward-looking statements by these cautionary statements. Forward-looking statements speak only as of the date they are made, and we do not undertake to update these statements other than as required by law. You are advised, however, to review any further disclosures we make on related subjects in our periodic filings with the Securities and Exchange Commission.
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SOURCE DecisionPoint Systems, Inc.