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SANDPOINT, Idaho, Sept. 25, 2012 (GLOBE NEWSWIRE) -- Coldwater Creek (Nasdaq:CWTR) today announced that its board of directors has approved a 1-for-4 reverse stock split of its common stock.
The reverse split will become effective and Coldwater Creek common stock will begin trading on a split-adjusted basis when trading begins on October 4, 2012.
Dennis Pence, Chairman and CEO, commented: "The decision to complete a reverse stock split was necessary for us to maintain our listing position on the Nasdaq Global Select Market, attract high quality investors and more effectively capitalize on the positive changes we have made to our brand which we believe will result in sustained long-term profitability and shareholder value."
At its special meeting of stockholders held on September 21, 2012, Coldwater Creek's stockholders approved a proposal authorizing the Board of Directors to effect a reverse stock split of the Company's common stock, at a ratio within the range of not less than one-for-three and not more than one-for-six. Following the special meeting, the Board of Directors approved the reverse stock split on the basis of one share of post-split common stock for each currently outstanding 4 shares of pre-split common stock.
As a result of the reverse stock split, every four shares of common stock issued prior to the opening of trading on October 4, 2012 will be consolidated into one issued share. As of September 21, 2012, there were 122,014,121 shares of common stock outstanding. The reverse stock split will reduce the number of outstanding shares of common stock to approximately 30,503,530. No fractional shares of common stock will be issued as a result of the reverse stock split. Stockholders who would otherwise receive a fractional share will be paid in cash.
The number of shares of Series A Preferred outstanding will remain the same. However, the number of shares of Common Stock each share of Series A Preferred is convertible into will be adjusted proportionally.