FMDA Futuremedia Announces Change to American Depositary Shares Ratio
BRIGHTON, England, Nov. 30 /PRNewswire-FirstCall/ -- Futuremedia plc
(Nasdaq: FMDA), a leading e-learning provider and design, exhibition and events
agency, announced today that the ratio of its American Depositary Shares ("ADS")
to ordinary shares will be changed to 1:1000 from 1:50, effective Monday,
December 3, 2007. The Bank of New York, Futuremedia's transfer agent, will
contact registered ADS holders with regards to this change.
Shareholders will receive one ADS for each 20 ADSs currently held, as the
ratio has changed by a factor of 20, effectively a 1:20 reverse stock split. The
Bank of New York will sell a portion of the new ADSs to establish a cash in lieu
rate for fractional ADSs, and ADS holders whose holdings are not exactly
divisible by 20 will receive cash in lieu of fractional amounts, at the rate
established by The Bank of New York. Including recent conversions of debt to
equity, the total number of ADSs outstanding after the ratio change will be
approximately 587,400. As a result of this ratio amendment, the ADS price
automatically increases proportionally -- as of the market close on Thursday,
November 29, 2007, the price would be $4.79 per ADS. However, there is no
assurance that the post-amendment ADS price will be at least equal to or greater
than the pre-amendment ADS price multiplied by the ratio change.
This ADS ratio change is expected to bring Futuremedia in compliance with
Marketplace Rule 4320(e) (the "Rule"), which requires a minimum bid price of $1
per ADS. In accordance with the Rule, Futuremedia was provided 180 calendar
days, or until December 24, 2007, to regain compliance.
As previously announced on July 2, 2007, to regain compliance with the Rule,
the closing bid price of the Company's ADSs must remain at $1 per share or more
for a minimum of 10 consecutive trading days. If this occurs, Nasdaq will
provide written notification that Futuremedia has regained compliance with the
Rule.
The purpose of this ratio change is to qualify for continued listing on the
Nasdaq Capital Market; however, the Company can make no assurances that either
a) Nasdaq continues to list the Company's ADSs on the Nasdaq Capital Market or
b) the Company will not voluntarily ask to be placed on Nasdaq's Over The
Counter (OTC) bulletin board in order to save significant operating costs
required for the Nasdaq Capital Market listing.
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About Futuremedia
Futuremedia plc is a global media company providing online learning, design,
exhibition and event services to public and private sector organizations.
Established in 1982 and listed on the Nasdaq in 1993, Futuremedia helps its
clients to communicate their values, product and brand information to employees,
customers and industry, and believes that learning is a key component in the
communication mix. Futuremedia divisions are Futuremedia Learning and Button
Group plc. The Button Group has been providing design, exhibition and event
services in Cannes, France and elsewhere around the world for more than 30
years. For more information, visit www.futuremedia.co.uk
Yorkville / Cornell Tracking Board #board-9964
"I can think of no more valuable commodity than information"
