PurchasePro Announces 1-for-5 Reverse Stock Split
LAS VEGAS, May 2, 2002 (PRIMEZONE) -- PurchasePro (Nasdaq:PPRO) today announced that its board of directors has approved a 1-for-5 reverse split of the company's common stock effective May 14, 2002 for shareholders of record on that date. The company said the action will reduce the number of its shares outstanding to approximately 17.6 million from about 88 million.
Richard L. Clemmer, chief executive officer, said, "We take this action to assure PurchasePro continues to meet listing requirements for the Nasdaq National Market. We also believe that the split will help create a more manageable capital structure with reduced administrative costs.
Furthermore, we would hope this action will have a beneficial impact on the short interest activity that has been, we believe, detrimental to PurchasePro's stock performance."
Clemmer added, "We believe this action, along with continued positive results relating to our turnaround, will result in increased visibility of our stock to institutions and other investors."
About PurchasePro
PurchasePro(r), www.purchasepro.com, is a B2B e-commerce leader with the objective of providing software to enable enterprises of all sizes to gain universal access to the world's largest commerce network. Founded in 1996, PurchasePro provides electronic procurement, materials management and strategic sourcing solutions to businesses worldwide.
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