DALLAS, Aug. 28, 2015, OTCQB, SWKH, (GLOBE NEWSWIRE) — SWK Holdings Corporation (OTCQB:SWKH) (“SWK” or the “Company”), a life science focused specialty finance company, today announced a 1-for-100 reverse stock split of its common stock, immediately followed by a 10-for-1 forward stock split of its common stock. The stock splits will be effective as of 5:00 pm Eastern Time September 15, 2015. Beginning with the opening of trading on September 16, 2015, the Company’s common stock will trade on OTCQB on a post-split basis. The stock split was approved at SWK’s 2015 Annual Meeting of Stockholders held on May 20, 2015.
At the effective time of the reverse stock split, every 100 shares of the Company’s issued and outstanding common stock will automatically be combined into one issued and outstanding share of common stock, with no change in par value per share. Holders with less than 100 shares of common stock will have their shares cancelled in the reverse stock split and will have the right to receive cash in lieu of such shares. Following such actions, the Company will implement a forward stock split pursuant to which shareholders will be entitled to receive 10 shares of common stock for each share of common stock held. No fractional shares will be issued in connection with the forward stock split. For stockholders owning greater than 100 shares, the net effective ratio will be a 10-to-1 reverse split. Please note that if you own less than 100 shares of common you will not participate in the forward split and will only receive cash in lieu of fractional shares following the reverse split.
The number of shares of common stock underlying the Company’s options, warrants, convertible securities or other rights to acquire shares of common stock will be adjusted accordingly. As a result, each stockholder’s percentage ownership interest and proportional voting power remains unchanged and the rights and privileges of the holders of the Company’s common stock are substantially unaffected.
Stockholders who would otherwise be entitled to receive a fractional share will receive a cash payment in lieu thereof. The Company has instructed Computershare, its exchange agent for the reverse stock split and the forward stock split, to aggregate all fractional shares and to sell such shares into the market. Stockholders entitled to receive a cash payment will be entitled to receive the net average price received in connection with the sale of such shares by Computershare. The Company in its discretion may elect in lieu of having Computershare sell such shares in the market, to acquire such shares into treasury.
The stock splits will reduce the number of outstanding common shares from approximately 131 million to approximately 13.1 million.
Computershare will mail a Letter of Transmittal and other documentation that will need to be completed and returned to Computershare in order to receive your post-split shares and any cash in lieu of a fractional share that you are entitled to receive in exchange for your pre-split shares of common stock.
If you hold any of your shares of common stock in uncertificated or “book-entry” form, you do not need to take any action because your pre-split shares of common stock will be converted automatically into post-split shares.
About SWK Holdings Corporation
SWK Holdings Corporation is a specialized finance company with a focus on the global healthcare sector. SWK partners with ethical product marketers and royalty holders to provide flexible financing solutions at an attractive cost of capital to create long-term value for both SWK’s business partners and its investors. SWK believes its financing structures achieve an optimal partnership for companies, institutions and inventors seeking capital for expansion or capital and estate planning by allowing its partners to monetize future cash flow with minimal dilution to their equity stakes. Additional information on the life science finance market is available on the Company’s website atwww.swkhold.com.
Statements in this release that are not strictly historical and any statements regarding events or developments that we believe or anticipate will or may occur in the future are “forward-looking” statements within the meaning of the federal securities laws. There are a number of important factors that could cause actual results, developments and business decisions to differ materially from those suggested or indicated by such forward-looking statements and you should not place undue reliance on any such forward-looking statements. Additional information regarding the factors that may cause actual results to differ materially from these forward-looking statements is available in our SEC filings, including our 2014 Annual Report on Form 10-K. These forward looking statements speak only as of the date of this release and the Company does not assume any obligation to update or revise any forward-looking statement, whether as a result of new information, future events and developments or otherwise.
CONTACT: SWK Investor Relations at (972) 687-7250 or firstname.lastname@example.org