ECOtality, Inc. (OTCBB: ETLY), a leader in clean electric transportation and storage technologies, announced today that the company received final approval for a 1-for-60 reverse stock split of its common stock. The reverse stock split will be effective for trading purposes on November 24, 2009. Based on the reverse stock split, ECOtality's symbol has also been changed to ETLE.
"We are confident this action will better position our company in the capital markets, help achieve a NASDAQ listing, and attract a larger pool of long-term institutional investors," stated Jonathan Read, president and CEO, ECOtality. "This decision reduces administrative, transaction and regulatory costs related to the number of shares authorized and outstanding and simplifies investor understanding and visibility of the company's earnings on a per share basis. The newly generated exposure to a wider array of investors will allow the company to more efficiently access capital in parallel with our anticipated growth and help improve shareholder value."
Information for Stockholders
Upon execution, ECOtality stockholders will receive one new share of ETLE common stock for every 60 shares held. Registered holders of the common stock will receive a letter of transmittal shortly after the effective date with instructions for the exchange of stock certificates. Stockholders with shares in brokerage accounts (shares held in "street name") will have their holdings automatically adjusted by their brokerage firm.
No scrip or fractional certificates will be issued in connection with the reverse stock split. Shareholders who otherwise would be entitled to receive fractional shares because they hold a number of old shares not evenly divisible by the 1-for-60 reverse stock split ratio will be entitled, upon surrender of certificate(s) or upon electronic conversion of such shares, to a cash payment in lieu thereof. The cash payment will equal the product obtained by multiplying (a) the fraction to which the stockholder would otherwise be entitled by (b) the per share closing sales price of the Company's common stock on the day immediately prior to the effective time of the reverse stock split. The ownership of a fractional interest will not give the holder thereof any voting, dividend or other rights except to receive payment therefore as described herein.
The reverse stock split will reduce the number of shares of the Company's common stock outstanding from approximately 403 millionto approximately 6.7 million shares.
About ECOtality, Inc.
ECOtality, Inc. (OTCBB:ETLY), headquartered in Scottsdale, Arizona, is a leader in clean electric transportation and storage technologies. Through innovation, acquisitions, and strategic partnerships, ECOtality accelerates the market applicability of advanced electric technologies to replace carbon-based fuels. For more information about ECOtality, Inc., please visit www.ecotality.com.
Forward-Looking Statements
This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All forward-looking statements are inherently uncertain as they are based on current expectations and assumptions concerning future events or future performance of the company. Readers are cautioned not to place undue reliance on these forward-looking statements, which are only predictions and speak only as of the date hereof. In evaluating such statements, prospective investors should review carefully various risks and uncertainties identified in this release and matters set in the company's SEC filings. These risks and uncertainties could cause the Company's actual results to differ materially from those indicated in the forward-looking statements.
Contacts:
ECOtality
Colin Read, 480-219-5005
cread@ecotality.com
or
Alliance
Advisors for ECOtality
Thomas Walsh, 212-398-3486 (Investor
Relations)
or
Detailed Stock Information:
Transfer Agent
Corporate
Stock Transfer
3200 Cherry Creek Drive South, Suite 430
Denver,
CO 80209
303-282-4800
