News Source: Press Release
"COPPELL, Texas--Today, Mannatech, Incorporated, held a special meeting of its shareholders and obtained shareholders' approval for the company's proposed reverse stock split. Shareholders of 19,347,703 shares of Mannatech stock, which represents 73.05% of the total outstanding shares, voted "FOR" the proposal. Approval of the proposal gives Mannatech's Board of Directors the authority to amend the company's Articles of Incorporation and effect a reverse split of the company's common stock at a specific ratio within the range of 1-for-10 and 1-for-15.At a subsequent Board of Directors' meeting held after the shareholders' meeting, the Board of Directors passed a resolution to set the ratio for the stock split at 1-for-10. It is intended that the reverse stock split will be effected, and an amendment to the company's Amended and Restated Articles of Incorporation will be filed on January 13, 2012.
"We believe the reverse stock split is the most effective means for maintaining our listing on NASDAQ," said J. Stanley Fredrick, Chairman of the Board. "We also believe that a higher per-share market price of our common stock could encourage investor interest in the company and promote greater liquidity for our shareholders."
"This move is strategic for the company. I believe it is an additional measure to strengthen the company's footing as we start the 2012 business year," said Mannatech's CEO, Dr. Robert A. Sinnott.
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