IDO Announces Board Approval for a Reverse Stock Split
05 Agosto 2011 - 3:01PM
Business Wire
IDO Security Inc. (OTCBB: IDOI) developer of the innovative
MagShoe™ shoe scanning device (SSD), announced today that the Board
of Directors has unanimously adopted a resolution to authorize a
reverse stock split, reducing the authorized shares, the number of
issued and outstanding shares of the Company’s common stock and
preferred stock.
The primary purposes of the reverse stock split are to increase
the share price of the common stock to help maintain the interest
of the markets and to reduce the outstanding shares of common stock
to a level more consistent with other public companies with a
similar market capitalization. The Board of Directors has
determined that it would be in the Company's best interest in the
near future to implement a reverse stock split up to a 1 for 5,000
basis.
Michael Goldberg, President of IDO Security said, “While the
reverse stock split does not change the intrinsic value of the
Company, the split should broaden the Company’s appeal to
investors. It is also necessary that we implement a reverse stock
split in order to be responsive to the requirements being
instituted by various clearing firms in hopes to provide our
shareholders with the opportunity to meet the new internal rules
being instituted by many clearing firms."
Following Board’s decision on the ratio of the reverse stock
split, implementation and the effectiveness of the reverse stock
split, all issued and outstanding shares of the Company’s common
stock, as well as common stock underlying stock options, warrants,
preferred stock and as well as the authorized shares will be
appropriately adjusted. There will be no cash or fractional shares
issued as part of the Company’s reverse stock split, therefore each
stockholder’s new share count will be rounded up to the nearest
whole share if the number of shares is not evenly divisible by the
ratio of the reverse stock split. The reverse stock split will not
affect any stockholder’s ownership percentage of the Company’s
common stock, except to the limited extent that the reverse stock
split would result in any fractional shares being rounded up.
Further details as to the record date and time of the reverse
stock split and the exact ratio of the reverse split will be
forthcoming.
About IDO Security, Inc.
Headquartered in New York with a subsidiary in Israel, IDO
Security designs, develops and markets the patented MagShoe™ shoe
scanning device (SSD). MagShoe™ fills a critical void in today's
detectors by extending screening to the lower body and feet.
MagShoe™'s "shoes-on" design maximizes security, thoroughness and
accuracy while eliminating the need to remove shoes for increased
convenience and safety. The MagShoe™ is neither invasive nor
harmful to the body as some of the other screening devices
currently used in the marketplace. Ideal for security and loss
prevention at virtually any facility, MagShoe™ is currently in use
at international airports, cruise lines, government agencies and
more.
For more information on the Company, please visit:
http://www.idosecurityinc.com
Forward-Looking Statements:
This press release contains forward-looking statements that
involve substantial uncertainties and risks. These forward-looking
statements are based upon our current expectations, estimates and
projections about our business and our industry, and that reflect
our beliefs and assumptions based upon information available to us
at the date of this release. We caution readers that
forward-looking statements are predictions based upon our current
expectations about future events. These forward looking statements
are not guarantees of future performance and are subject to risks,
uncertainties and assumptions that are difficult to predict. Our
actual results, performance or achievements could differ materially
from those expressed as a result of a number of factors, including
but not limited to, the effect or success of any reverse stock
split that the Company may implement, the sufficiency of existing
capital resources, uncertainties related to the development of
IDO's business plan, the ability to secure additional sources of
financing, general economic conditions, the availability of
competing products and the ultimate market acceptance of our
products, changes in technology, legislative or regulatory changes
that affect us and the risks and uncertainties discussed under the
heading "RISK FACTORS" in Item 1A of IDO's Annual Report on Form
10-K for the year ended December 31, 2010, and in our other filings
with the Securities and Exchange Commission at www.sec.gov. We
undertake no obligation to revise or update any forward-looking
statement for any reason.
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