Bellevue, WA April 15, 2010 ITEX Corporation (OTCBB: ITEX), The Membership Trading CommunitySM, a leading marketplace for cashless business transactions in North America, today announced a one for five reverse stock split of its common stock will take effect as of 12:01 a.m. Eastern Daylight Time on May 3, 2010 (the Effective Time).
As a result of the reverse stock split, every five shares of ITEX’s common stock that are issued and outstanding immediately prior to the Effective Time will be automatically combined into one issued and outstanding share. No fractional shares will be issued in connection with the reverse stock split. Stockholders who are entitled to fractional shares will receive a cash payment in lieu of receiving fractional shares equal to the fractional share interest multiplied by $1.50 per share on a pre-split basis.
The number of shares of ITEX’s common stock issued and outstanding will be reduced from 18,027,914 shares to approximately 3,605,307 shares. ITEX filed an amendment to its Articles of Incorporation to effect the reverse stock split. The authorized shares will be proportionally reduced from 45,000,000 to 9,000,000 shares.
Effective May 3, 2010, ITEX’s common stock will begin trading on the OTC Bulletin Board on a split-adjusted basis under the symbol ITEXD for a period of 20 trading days. Thereafter, our trading symbol will revert back to the original symbol, ITEX.
Steven White, ITEX Chairman and CEO stated, The reverse split will convert a couple hundred small stock positions into a fractional share, which the Company will cash out. Eliminating these stockholders will provide better efficiencies and lower costs for the ongoing management of our shareholder base, and positions us for other stockholder value strategies.
