The reverse stock split is primarily intended to bring the company into compliance with the minimum bid price requirement for maintaining its listing on the Nasdaq Capital Market. The new CUSIP number for the common stock following the reverse split will be 02362F 302.
On November 8, 2019, a majority of the company's stockholders approved giving the Board discretionary authority to enact the reverse stock split. The Board approved the reverse stock split on a one for twenty-five ratio on November 21, 2019.
As a result of the reverse split, each 25 pre-split shares of common stock outstanding will automatically combine into one new share of common stock without any action on the part of the holders. Proportionate adjustments will be made to the conversion and exercise prices of the company's outstanding warrants and stock options. The common stock issued pursuant to the reverse stock split will remain fully paid and non-assessable. The reverse stock split will not affect the par value of the common stock which stands at $0.01 per share.
"The reverse split has had solid support from stockholders and from our board of directors. We believe the change in capital structure can strongly benefit our stockholders and efforts by our Special Committee as it explores strategic alternatives to maximize shareholder value." stated Brent Kelton, chief executive officer of Ameri100.
As was previously announced on August 26th, Ameri100's Board of Directors, working together with its management team and legal and financial advisors, has commenced a process to explore, review, and evaluate a range of potential strategic alternatives focused on maximizing shareholder value. The Board of Directors has established a Special Committee comprised solely of independent directors to lead the strategic review process, and the Special Committee has retained independent legal advisors. The company has engaged a financial advisor to assist in its strategic review. There is no certainty that the review of strategic alternatives will result in Ameri Holdings pursuing a particular transaction or completing any such transaction.
About Ameri100
Ameri100 is a specialized SAP cloud, digital and enterprise solutions company which provides SAP services to customers worldwide. Headquartered in Suwanee, Georgia, Ameri100 has offices in the U.S. and Canada. The Company also has global delivery centers in India. With its bespoke engagement model, the Company delivers transformational value to its clients across industry verticals. For further information, visit www.ameri100.com
Corporate Contact:
Barry Kostiner, Chief Financial Officer
IR@ameri100.com
Investor Relations Contact:
Sanjay M. Hurry
LHA Investor Relations
(212) 838-3777
IR@ameri100.com
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