Alvarion Announces Reverse Split of Ordinary Shares
Alvarion^® Ltd. (NASDAQ: ALVR) (Alvarion or the Company), a global provider of optimized wireless broadband solutions addressing the connectivity, coverage and capacity challenges of public and private networks, announced today that its Board of Directors approved a reverse split of the Company's ordinary shares in a ratio of 1:10, to be affected automatically on April 1, 2013, unless the Board of Directors determines prior to such date that effecting such reverse split shall not be in the best interest of the Company and its shareholders. The reverse split was previously approved by the Company's shareholders at the Annual General Meeting held on September 10, 2012.
Upon execution of the reverse split, shareholders will receive one new share of Alvarion for every 10 shares held by them. The reverse split will reduce the number of Company outstanding shares from approximately 62 million to approximately 6.2 million. Proportional adjustments will be automatically made to Alvarion's outstanding stock options and other equity compensation incentive awards.
Alvarion will not issue any fractional shares as a result of the reverse split. Instead, all fractional shares will be rounded up to the next whole number of shares.
The reverse split is intended to increase the per share trading price of the Company's ordinary shares to satisfy the $1.00 minimum bid price requirement for continued listing on the NASDAQ Global Market. As previously announced, in order to maintain the Company's listing on NASDAQ, the Company's ordinary shares must have a closing bid price of $1.00 or more for a minimum of 10 consecutive trading days prior to April 24, 2013. There can be no assurance that the reverse split will have the desired effect of raising the closing bid price of the Company's ordinary shares prior to April 24, 2013, to meet such requirement.
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