mszluka

ExpressJet Announces Reverse Stock Split HOUSTON, Sept. 5 /PRNewswire-FirstCall/ -- ExpressJet announced today that it filed a definitive proxy statement with the Securities and Exchange Commission pursuant to Section 14(a) of the Securities Exchange Act of 1934 requesting shareholder approval for a 1:10 reverse stock split for its common shares. The reverse stock split, as previously announced, is part of ExpressJet's continuing efforts toward improving liquidity for its stockholders. ExpressJet will hold a special stockholder meeting in Houston, Texas on Wednesday, October 1 at 10:00 AM Central to seek approval for the transaction.


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As a result of the reverse stock split, every 10 shares of ExpressJet common stock will be combined into one share of ExpressJet common stock and be traded under a new CUSIP. The reverse stock split affects all shares of common stock and stock options of ExpressJet outstanding immediately prior to the effective time of the reverse stock split. ExpressJet will pay cash in lieu of fractional shares, as required.


Successful completion of the transaction will allow ExpressJet to immediately return to trading on all NYSE Group platforms and return to compliance with the continued listing standards of the New York Stock Exchange once the six month cure period expires on January 18, 2009. The transaction will also allow ExpressJet to focus on completing negotiations regarding wage and benefit concessions with its unionized work groups.


After completing the transaction, ExpressJet expects to have 21,691,018 shares outstanding and approximately $68.5 million in debt remaining outstanding, primarily related to its 11.25% 2023 convertible notes.
Important Additional Information Regarding the Reverse Stock Split Has Been Filed with the SEC


In connection with the reverse stock split, the company has filed a definitive proxy statement with the Securities and Exchange Commission (the "SEC"). INVESTORS AND SECURITY HOLDERS ARE ADVISED TO READ THE DEFINITIVE PROXY STATEMENT BECAUSE IT CONTAINS IMPORTANT INFORMATION ABOUT THE REVERSE STOCK SPLIT. Investors and security holders may obtain a free copy of the definitive proxy statement and other relevant documents filed with the SEC from the SEC's website at U.S. Securities and Exchange Commission (Home Page). The company's security holders and other interested parties are also able to obtain, without charge, a copy of the definitive proxy statement and other relevant documents by directing a request by mail or telephone to Investor Relations, 700 North Sam Houston Parkway West, Ste 200, Houston, TX 77067, telephone (832) 353-1409, or from the Company's website, ExpressJet.


The company and its directors, executive officers and other members of its management and employees may be deemed to be participants in the solicitation of proxies from the company's shareholders with respect to the reverse stock split. Information about the company's directors and executive officers and their ownership of the company's common stock is set forth in the definitive proxy statement.

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Matt Szluka
EWR EMB-145 CA

"Anyone can do the job when things are going right. In this business we play for keeps." Ernest K. Gann

philw

quick guys buy 10000 shares

aa30

I am not a smart man, so I had to look up what it would do to the price, etc. Probably not much.

From Investipedia(or something like that)...

A reduction in the number of a corporation's shares outstanding that increases the par value of its stock or its earnings per share. The market value of the total number of shares (market capitalization) remains the same.

For example, a 1-for-2 reverse split means you get half as many shares, but at twice the price. It's usually a bad sign if a company is forced to reverse split - firms do it to make their stock look more valuable when, in fact, nothing has changed. A company may also do a reverse split to avoid being delisted.

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You can't drink and come to work. You're not airline pilots! --Dr. Cox

mszluka

Apparently this one is a 1:10 reverse split.

I think this is definitely to keep us from getting delisted.

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Matt Szluka
EWR EMB-145 CA

"Anyone can do the job when things are going right. In this business we play for keeps." Ernest K. Gann

aa30

Right, I agree. However, if I read and understand what this means (about a 50% chance), you won't make any money on the deal by buying a ton of shares before it gets approved. You will own less shares at a greater price, netting you zero. I don't have a finance degree, nor am I a broker. I just play one at home, a very bad one at that.

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You can't drink and come to work. You're not airline pilots! --Dr. Cox

nashty13

It also means if we slip below 2 buck again we are screwed. Lets say hypothetically our stock goes down to $1 after this split our company will not be worth very much and we could see another attempted buyout......

rjacobs

No shareholder would make any money on a reverse split. If the stock is worth .25 a share and you own 10, when they reverse split it now you own 1 share that is worth 2.50. Now if they gave you 5 free shares at pre-delisted value, then you could make some money, but I doubt this will happen. This is only a way to keep from getting de-listed, nothing else. It may spurn people(who dont follow what is really going on) to buy because "the price just jumped, maybe something is happening with this airline" and we should get in at the bottom.

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I used to be forced to "Officially" have no stance on gojet, now that no I longer work for "The Holding Company", my "Official" stance is, well you know what that is and if not let me know ill explain it.

Read your fuckin contract.

TacoRocket

Awesome! Now if the price goes up to $160 a share I can get my IPO money back!

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IAH 737 FO
Ex-CoEx

FreightDriver

Just wait and see what will happen the following day. About 8 out of 10 companies that do the reverse are straped for cash and once it hits the market at 1.50 the next day it will be back to where it was the day before a .25 ...

Its not a good deal.

IAH2LAS

This totally sucks and I will be voting "NO" on the reverse split.