DALLAS, July 1 /PRNewswire-FirstCall/ -- Blockbuster Inc.
(NYSE: BBI, BBI.B) today announced that the preliminary tabulation
figures received from the inspector of election for the company's
2010 annual meeting show that while the company's proposal to
convert each outstanding share of Class B common stock into Class A
common stock and the company's reverse stock split proposal each
received the overwhelming approval of votes cast, due to a low vote
turnout, the proposals did not receive the required affirmative
vote of the majority of the votes of the outstanding Class A and
Class B shares voting as a single class. Of the approximately
289.9 million total votes outstanding, the conversion proposal
received approximately 141.2 million votes in favor (or
approximately 48.7%) and the reverse stock split proposal received
approximately 126.1 million votes in favor (or approximately
43.4%).
The proposal to effect the reverse stock split was made in part
to allow the company to take action to facilitate regaining
compliance with the continued listing criteria of the NYSE, on
which both the Class A and Class B common stock currently trade.
Among such criteria is the requirement that common stock maintain a
$1.00 minimum average closing
price.
In November 2009, we were notified
by the NYSE that our Class A common stock did not satisfy the
NYSE's continued listing standard that requires the average closing
price of a listed security to be no less than $1.00 per share over a consecutive 30-trading-day
period. Under the NYSE's rules, we had through the date of the
annual meeting within which to cure this deficiency. Because the
reverse stock split proposal was not approved by the requisite
number of votes, the NYSE has informed the company that it intends
to begin the process to delist both the Class A and Class B common
stock.
As previously announced, at the annual meeting each of the
company's director nominees was elected, the company's "say-on-pay"
proposal was approved and the ratification of
PricewaterhouseCoopers LLP to serve as the company's independent
registered public accounting firm for fiscal 2010 was approved.
About Blockbuster Inc.
Blockbuster Inc. is a leading global provider of rental and
retail movie and game entertainment. The company provides customers
with convenient access to media entertainment anywhere, any way
they want it - whether in-store, by-mail, through vending kiosks or
digitally to their homes and mobile devices. With a highly
recognized brand and a library of more than 125,000 movie and game
titles, Blockbuster leverages its multichannel presence to serve
nearly 47 million global customers annually. The company may be
accessed worldwide at www.blockbuster.com.
SOURCE Blockbuster Inc.