Comtex News Network, Inc. Announces Special
Meeting of Stockholders to Approve Reverse Stock
Split and Fractional Share Purchase
February 05, 2010 04:03 PM Eastern Time
NEW YORK--(EON: Enhanced Online News)--Comtex News Network, Inc. (OTC BB: CMTX), a leading
provider of economically useful electronic real-time news, content and SmarTrend® market products, announced
today that it will hold a special meeting of stockholders to (i) elect directors, (ii) approve amendments to the
Company’s certificate of incorporation which, among other things, would effect a 1,000-to-1 reverse stock split of
the Company’s common stock and the cash-out of shareholders holding fewer than 1,000 shares, and (iii) ratify the
appointment of the Company’s independent auditors. If the stockholders approve the amendments to the
Company’s certificate of incorporation, each stockholder will receive one share of the Company’s common stock in
exchange for every 1,000 shares of common stock that he or she currently holds. The Company will not issue
fractional shares in the reverse stock split. Instead, stockholders will receive cash in the amount of $0.29 per share in
lieu of any fractional shares created by the reverse stock split. The price per share to be paid for fractional shares
represents a premium of approximately 30% over the average closing price of the Company’s common stock over
the ten trading days prior to this announcement and the filing of the preliminary proxy statement with the SEC. The
date, time and place of the special meeting will be announced prior to the definitive proxy statement being made
available to stockholders.
The Company’s Board of Directors has determined that SEC regulations, including periodic reporting obligations,
are overly burdensome on the Company’s financial and personnel resources, and believes by reducing the number of
stockholders and deregistering with the SEC, the Company will substantially reduce the costs associated with
complying with these regulations and reporting r