Jaclyn Proceeding with Reverse-Forward Split

Jaclyn announced that it is proceeding with the reverse-forward stock split in order to delist from the AMEX:

Jaclyn, Inc., a Delaware corporation (the "Company"), held a special meeting of stockholders on May 7, 2008. At the special meeting, a majority of outstanding shares of the Company's common stock, $1.00 par value per share, adopted and approved amendments to the Company's certificate of incorporation to effect a reverse stock split of the Company's issued and outstanding shares of common stock at a ratio of 1-for-250, followed immediately by a 250-for-1 forward stock split of the shares of common stock.


Nothing has happened to my shares but I hope it goes through successfully. I'm in Canada and I hope there isn't some complication with foreign holders. I also bought under two different accounts at two different brokerages (my regular investment account and my RRSP (similar to 401k/IRA in USA)) and I hope my shares get tendered (if it does fail, it would clearly be a case of too much greed on my part :) ).

Jaclyn is a good example illustrating how small companies don't release information in a timely manner and can disadvantage passive public investors. Their shareholder meeting occurred on May 7th but the filed this release with the SEC on May 12th. If this were a large company, information would have been filed more quickly. None of this mattered much in this case but it does show how information flow is limited with smaller companies.

Comments

  1. craigatkMay 16, 2008 at 4:22 AM

    how many shares total at both accounts did you purchase?

    ReplyDelete
  2. Sivaram VMay 16, 2008 at 10:04 AM

    249 each... we'll see what happens...

    ReplyDelete
  3. craigatkMay 20, 2008 at 1:18 AM

    Good luck -- I was not involved but seriously wanted to. Any update as they have actually delisted by now?

    ReplyDelete
  4. Sivaram VMay 20, 2008 at 10:29 AM

    Jeff from Circle of Competence blog implies that the deal is going through...

    It's deals like these that small investors can capitalize on. Thanks to Jeff for the original mention.

    ReplyDelete

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