| [October 27, 2004] |
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Michelex Update on Forward Stock Split and Mandatory Share Exchange
MASSENA, N.Y. --(Business Wire)-- Oct. 27, 2004 -- Michelex Corp (OTCBB:MHXC) a manufacturer, importer and distributor of a full range of specialty plastic products announced today that the forward stock split will be payable upon surrender of certificates in a mandatory share exchange. The Company anticipates that it will file its notification with the NASDAQ today thus starting the required ten day notice period which would set the forward split and certificate surrender and exchange date on November 8, 2004.
The Company expects to update this release later today and apologizes for the delay but feels that the surrender and share exchange is necessary to protect all legitimate shareholder value.
In order to facilitate the stock split and share exchange the Company is applying for a new CUSIP number and will receive a new trading symbol. All issued and outstanding shares MUST be surrendered and exchanged for new certificates with the new CUSIP number.
After the certificate exchange the old certificates will not entitle the holder to any rights of a shareholder, will be worthless, non-transferable, non-tradable and have no value except for the right to be exchange for the new stock certificates. Physical surrender and exchange of the stock certificates will take place exclusively through the Company's transfer agent.
The Company anticipates that trading will temporarily change to a "when issued" status symbolized by a "V" added to the symbol, this will allow sufficient time for brokerages, clearing houses and investors to surrender and exchange their certificates. During this period the SEC T+3 requirement is suspended and a stock will trade with open-ended settlement. When NASDAQ determines that a sufficient number of shares are outstanding and trading in the marketplace the "when issued" status and the "V" are removed and all unsettled trades will require immediate settlement.
Persons who hold their shares in brokerage accounts or "street name" will not be required to take any action to effect the exchange of their certificate unless their broker instructs them otherwise. However, the Company plans to require that each new certificate specify and include the name of the beneficial owner and that the new certificates be mailed directly to that beneficial owner. The Company will assist shareholders with any potential problems that may arise during this process.
The Company will request that the NASD release a UNIFORM PRACTICE ADVISORY for guidance for brokerage firm compliance with this certificate surrender and exchange.
The forward split and surrender and exchange will take place as soon as possible in compliance with the NASDAQ rules and related laws. The Company will disclose the new CUSIP number, the new symbol, the new date for the forward split and certificate surrender and exchange and all other specific details necessary to effectuate this action as soon they are received.
Michelex Corporation will remain the name of the Company.
About Michelex
Michelex Plastics -- Founded in 1972, is a manufacturer/importer and distributor of C-Zero's, C-Shells, Norelco Boxes, Jewel Boxes and other related specialty plastic products. The company has manufacturing facilities and distribution points in New York and Salt Lake City. The company employs over 100 people who are committed to the customers and to the operations of the business. Michelex offers a full range of products through its divisions to make it a one-stop shop for its customers.
Michele Audio -- Audio duplication services and an exclusive rights holder of a large catalog of music and spoken word recordings.
Michelex Media Products -- Producer, supplier and distributor of paper multimedia packaging products, also offering complete fulfillment services to its customers.
For further information, www.micheleaudio.com.
Safe Harbor:
This release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The risks and uncertainties that may affect the operations, performance development and results of the Company's business include but are not limited to fluctuations in financial results, availability and customer acceptance of our products and services, the impact of competitive products, services and pricing, general market trends and conditions, and other risks detailed in the Company's SEC reports.
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