Thursday, May 15, 2008 4 comments ++[ CLICK TO COMMENT ]++

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.

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4 Response to Jaclyn Proceeding with Reverse-Forward Split

May 16, 2008 at 4:22 AM

how many shares total at both accounts did you purchase?

May 16, 2008 at 10:04 AM

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

May 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?

May 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.

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