DASAN Zhone's common stock to begin trading on adjusted basis on March 1, following one-for-five reverse split
Oakland, Calif. - Feb. 28, 2017 - DASAN Zhone Solutions, Inc. (NASDAQ: DZSI), a global leader in fiber access transformation for enterprise and service provider networks, today announced that the previously announced reverse stock split of the company's common stock became effective on February 28, 2017 at a ratio of one-for-five, and that the company's common stock will commence trading on a post-split basis beginning on March 1, 2017. The company received the requisite stockholder approval for the reverse stock split on February 27, 2017. The new CUSIP number for the company's common stock will be 23305L206.
The reverse stock split automatically combined every five shares of the company's common stock into one issued and outstanding share without any change in the par value of the shares. Following the reverse stock split, the number of outstanding shares of the company's common stock was proportionally reduced from approximately 81.9 million to approximately 16.4 million. The reverse stock split also proportionately decreased the number of authorized shares of the company's common stock from 180 million to 36 million.
No fractional shares of common stock will be issued in connection with the reverse stock split. Shareholders that would otherwise hold a fractional share of the company's common stock will receive a cash payment in lieu of fractional shares. The company's common stock will continue to trade on a post-split basis under the trading symbol "DZSI".
As previously announced, DASAN Zhone Solutions is required to evidence compliance with Nasdaq's initial listing minimum bid or closing price requirement by March 13, 2017. Although DASAN Zhone Solutions expects that the reverse stock split will enable the company to comply with the Nasdaq initial listing and minimum bid price requirement, there can be no assurance that the company will be able to regain such compliance. Delisting from the Nasdaq Capital Market could have a material adverse effect on the company's business and on the trading of its common stock.
About DASAN Zhone Solutions
DASAN Zhone Solutions, Inc. is a global leader in broad-based network access
solutions. The company provides solutions in five major product areas
including broadband access, Ethernet switching, mobile backhaul, passive
optical LAN (POL) and software defined networks (SDN). More than 750 of the
world's most innovative network operators, service providers and
enterprises turn to DASAN Zhone Solutions for fiber access transformation.
DASAN Zhone Solutions is committed to building the fastest and highest quality
All IP Multi-Service solution for its customers. DASAN Zhone Solutions is
headquartered in Oakland, California.
This press release contains forward-looking statements that are subject
to the safe harbors created under the Securities Act of 1933 and the
Securities Exchange Act of 1934. Words such as "anticipate,"
"believe," "continue," "could,"
"estimate," "expect," "goal,"
"intend," "may," "plan,"
"project," "seek," "should,"
"target," "will," "would," variations of
such words, and similar expressions are intended to identify
forward-looking statements. In addition, forward-looking statements
include, among others, statements that refer to the expected
commencement of trading of the company's post-split common stock(,
compliance with the Nasdaq initial listing minimum bid or closing price
requirements and the consequences of delisting of the company's
common stock from the Nasdaq Capital Market). Readers are cautioned that
actual results could differ materially from those expressed in or
contemplated by the forward-looking statements. Please refer to the risk
factors contained in the company's SEC filings available at
www.sec.gov, including without limitation, the company's most recent
reports on Forms 10-K, 10-Q and 8-K. Readers are cautioned not to place
undue reliance on any forward-looking statements, which speak only as of
the date on which they are made. The company undertakes no obligation to
update or revise any forward-looking statements for any reason.