San Diego, Oct. 21, 2005 (PRIMEZONE) -- Sagient Research Systems, Inc. (OTC BB:SRYS.OB
), a leading publisher of independent research for financial services companies and institutional investors, today announced that the Company's Board of Directors, and a majority of its stockholders, have approved a 1-for-101 reverse stock split. Under the terms of the reverse stock split, each 101 shares of the Company's common stock will be converted into one share of common stock and holders of less than 101 shares of common stock prior to the reverse stock split will receive $0.12 per share. Following the reverse stock split, the Company will effect a 101-for-1 forward stock split so that the number of shares held by each holder of at least one share of common stock after the reverse stock split will ultimately be unchanged.
The Board of Directors has approved the reverse stock split based on its determination that the Company achieves few of the benefits of being a public company because of a lack of an active trading market for its common stock while being saddled with the costs of being a publicly held company. Stockholders owning 15,684,715 shares of common stock, representing approximately 67% of the total number of shares outstanding, approved the reverse stock split by signing a written consent in lieu of a meeting of stockholders.
The anticipated result of the reverse stock split will be to reduce the number of stockholders of record to fewer than 300. The Company intends to cease filing periodic reports with the Securities and Exchange Commission and to terminate the quotation of its common stock on the OTC Bulletin Board. The Company filed a preliminary Information Statement today and expects to distribute a definitive Information Statement to all holders of its common stock in the near future. The reverse stock split will not be effected prior to the 20th day following the distribution of the definitive Information Statement to stockholders. However, the Company reserves the right not to proceed with the reverse stock split in the discretion of its Board of Directors.
The Information Statement will contain additional important information regarding the reverse stock split. We advise our stockholders to read the definitive Information Statement when made available. Copies of both the preliminary Information Statement, and any amendments or supplements thereto, and the definitive Information Statement, will be available without charge at the SEC's website at http://www.sec.gov or from the Secretary of the Company when they are mailed to stockholders.
About Sagient Research Systems
Sagient Research Systems is a publisher of independent research. We develop, produce, and sell proprietary research products to mutual funds, hedge funds, and investment banks. Our business strategy is to continue to leverage our development, technology, and marketing expertise to solidify our position as a leading provider of independent research to the financial services and institutional investment communities. For more information, please visit the Sagient Research Systems website at http://www.sagientresearch.com.
Safe Harbor Statement
Statements in this press release that are not statements of historical or current fact constitute ``forward-looking statements'' within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties, and other unknown factors that could cause the actual results of the Company to be materially different from the historical results or from any future results expressed or implied by such forward-looking statements. In addition to statements which explicitly describe such risks and uncertainties, readers are urged to consider statements labeled with the terms ``believes,'' ``belief,'' ``expects,'' ``intends,'' ``anticipates,'' ``will,'' or ``plans'' to be uncertain and forward-looking. The forward-looking statements contained herein are also subject generally to other risks and uncertainties that are described from time to time in the Company's reports and registration statements filed with the Securities and Exchange Commission.