NEW YORK, Nov. 1, 2006 (PRIMEZONE) -- Medstrong International Corporation (OTCBB:MSRG) announced that its stockholders approved on September 14, 2006, a 1:75 reverse split of Medstrong's common stock, which had been previously approved by Medstrong's Board of Directors. The reverse split is effective for trading purposes on November 2, 2006.
The Medstrong common stock will, effective with the opening of business on November 2, 2006, trade under (OTCBB:MDSI). Medstrong's warrants will trade under (OTCBB:MDSIW). As a result of the reverse stock split, holders of certificates representing pre-split shares of Medstrong common stock have the right to receive, upon surrender of their certificates representing such pre-split shares of Medstrong common stock, new certificates representing post-split shares of Medstrong common stock at the ratio of one (1) share of post-split Medstrong common stock for every seventy-five (75) shares of pre-split Medstrong common stock.
Fractional shares of post-split Medstrong common stock will not be issued as a result of the reverse stock split; instead, holders of pre-split shares of Medstrong common stock will have the number of shares they receive as a result of the reverse stock split rounded up to the nearest whole share upon the surrender to American Stock Transfer and Trust Company, the Exchange Agent, of certificates representing such shares.
The number of Medstrong's outstanding warrants will not change, but on and after the effective date of the reverse split each outstanding warrant will enable the holder thereof to purchase, upon exercise thereof, 75 times fewer of the number of shares of common stock which such holder would have been able to purchase upon exercise thereof immediately preceding the reverse stock split, at the same aggregate price required to be paid therefor upon exercise of the warrant immediately preceding the reverse stock split.
Forward-Looking Statements
This press release may include forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are based on the Company's current expectations as to future events. However, the forward-looking events and circumstances discussed in this press release might not occur, and actual results could differ materially from those anticipated or implied in the forward-looking statements.