Reported per share net income or loss will be higher because there will be fewer shares of common stock
outstanding.
After the effective date of the Reverse Stock Split that the Board elects to implement, our common stock would have a new committee on
uniform securities identification procedures number, or CUSIP number, a number used to identify our common stock.
The Companys common stock is
currently registered under Section 12(b) of the Exchange Act, and we are subject to the periodic reporting and other requirements of the Exchange Act. The Reverse Stock Split will not affect the registration of our common stock under the
Exchange Act or the listing of our common stock on the Nasdaq. Following the Reverse Stock Split, our common stock will continue to be listed on the Nasdaq under the symbol PTMN, although it will be considered a new listing with a new
CUSIP number.
Effect on Preferred Stock
Pursuant to our Certificate of Incorporation, our capital stock consists of 5,000,000 shares of Preferred Stock, par value $0.01 per share, none of which are
outstanding, and 100,000,000 shares of common stock. The Proposed Reverse Stock Split Amendment to effect the Reverse Stock Split would not impact the total authorized number of shares of preferred stock or the par value of the preferred stock.
Effect on Par Value
The Proposed Reverse Stock
Split Amendment will not affect the par value of our common stock, which will remain at $0.01.
Reduction in Stated Capital
As a result of the Reverse Stock Split, upon the Effective Time, the stated capital on the Companys balance sheet attributable to the Companys
common stock, which consists of the par value per share of our common stock multiplied by the aggregate number of shares of our common stock issued and outstanding, will not change as a result of the Reverse Stock Split, other than a minor
adjustment in respect of the treatment of fractional shares. Our stockholders equity, in the aggregate, will remain unchanged.
No Going
Private Transaction
Depending on the Reverse Stock Split ratio selected by the Board, as a result of the Reverse Stock Split, certain stockholders
may no longer have any equity interest in the Company. Because no fractional shares will be issued, holders of common stock could be eliminated in the event that the Reverse Stock Split is implemented. However, the Board does not intend for
this transaction to be the first step in a going private transaction within the meaning of Rule 13e-3 of the Exchange Act.
Shares Held in Book-Entry or Through a Broker, Bank or Other Holder of Record
If you hold registered shares of our common stock in a book-entry form, you do not need to take any action to receive your post-Reverse Stock Split shares of
our common stock in registered book-entry form or your cash payment in lieu of fractional shares, if applicable. If you are entitled to post-Reverse Stock Split shares of our common stock, a transaction statement will automatically be sent to your
address of record as soon as practicable after the Effective Time indicating the number of shares of our common stock you hold. In addition, if you are entitled to a payment of cash in lieu of fractional shares, a check will be mailed to you at your
registered address as soon as practicable after the Effective Time. By signing and cashing this check, you will warrant that you owned the shares of the Companys common stock for which you received a cash payment.
At the Effective Time, we intend to treat stockholders holding shares of our common stock in street name (that is, through a broker, bank or other
holder of record) in the same manner as registered stockholders whose shares
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