Avitar Shareholders Approve One-for-Fifty Reverse Stock Split -- The Effective Date to Be Announced Next Week
21 January 2006 - 12:30AM
PR Newswire (US)
CANTON, Mass., Jan. 20 /PRNewswire-FirstCall/ -- Avitar, Inc.
(OTC:AVRNE) (BULLETIN BOARD: AVRNE) -- ("Avitar" or the "Company")
announced today that the annual meeting of the shareholders was
held on January 18, 2006 and a one-for-fifty (1 for 50) reverse
stock split was approved. When the reverse stock split becomes
effective, each outstanding fifty shares of common stock will be
combined into and become one share of common stock. The Company
intends to announce next week the effective date and time of the
reverse stock split. No fractional shares will be issued in
connection with the reverse stock split. Stockholders who otherwise
would be entitled to receive fractional shares will be entitled,
upon surrender to the exchange agent of certificate(s) representing
such shares, to one full share in lieu of any such fractional
share. Our transfer agent, Continental Stock Transfer & Trust
Company, will act as exchange agent for purposes of implementing
the exchange of stock certificates, and is referred to as the
"exchange agent." As soon as practicable after the effective time,
a letter of transmittal will be sent to stockholders of record as
of the effective time for purposes of surrendering to the exchange
agent certificates representing pre-reverse stock split shares in
exchange for certificates representing post-reverse stock split
shares in accordance with the procedures set forth in the letter of
transmittal. No new certificates will be issued to a stockholder
until such stockholder has surrendered such stockholder's
outstanding certificate(s), together with the properly completed
and executed letter of transmittal, to the exchange agent. From and
after the effective time, any certificates formerly representing
pre- reverse stock split shares which are submitted for transfer,
whether pursuant to a sale, other disposition or otherwise, will be
exchanged for certificates representing post-reverse stock split
shares. Stockholders who do not have stock certificates for
surrender and exchange will have their accounts automatically
adjusted in order to reflect the number of shares of common stock
they hold as a consequence of the reverse stock split. STOCKHOLDERS
SHOULD NOT DESTROY ANY STOCK CERTIFICATE(S) AND SHOULD NOT SUBMIT
ANY CERTIFICATE(S) UNTIL REQUESTED TO DO SO. About Avitar Avitar,
Inc. develops, manufactures and markets innovative and proprietary
products. Their field includes the oral fluid diagnostic market,
the disease and clinical testing market, and customized
polyurethane applications used in the wound dressing industry.
Avitar manufactures ORALscreen(R), the world's first non-invasive,
rapid, onsite oral fluid test for drugs-of-abuse, as well as
HYDRASORB(R), an absorbent topical dressing for moderate to heavy
exudating wounds. Avitar is also developing diagnostic strategies
for disease and clinical testing in the estimated $25 billion
in-vitro diagnostics market. Conditions targeted include influenza,
diabetes, and pregnancy. For more information, see Avitar's website
at http://www.avitarinc.com/. Safe Harbor Statement. This release
contains forward looking statements that are subject to risks and
uncertainties including the development and marketing of new
applications and other risks that are detailed from time to time in
the Company's filings with the Securities and Exchange Commission.
In view of such risks and uncertainties, the Company's actual
results could differ materially from those anticipated in such
forward looking statements. Company Contact: Jay C. Leatherman
Avitar Inc. 781-821-2440 http://www.avitarinc.com/ First Call
Analyst: FCMN Contact: DATASOURCE: Avitar, Inc. CONTACT: Jay C.
Leatherman of Avitar Inc., +1-781-821-2440, Web site:
http://www.avitarinc.com/
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