Comtex Goes Private

Jun 08, 2010

Comtex News Network, Inc.'s stockholders approved a 1-for-1,000 reverse stock split of the Company's common stock and the cashout of stockholders holding fewer than 1,000 shares. The proposals needed the support of 90% of the company's shareholders in order to pass. The practical upshot of this reverse split is that the company will have fewer than 200 shareholders and will file with the Securities and Exchange Commission to deregister as a publicly-held company. Those stockholders who are being bought out will be paid $0.29, a 30% markup over the company's average closing price over the previous 10 days.