JACKSONVILLE, Fla., April 14 /PRNewswire-FirstCall/ -- Phlo Corporation (Pink Sheets: PHCP) (the "Company") clarified today that "pre-reverse split" Phlo common stock certificates are negotiable in connection with market transactions and are a valid representation of a holder's current position in Phlo common stock. This clarification was issued in response to information from shareholders that a number of brokers and clearing firms will not negotiate Phlo common stock certificates issued prior to Phlo's 1-for-100 reverse split of its capital stock until such certificates are exchanged for "post-reverse split" certificates.
Although shareholders will receive a request from the Company to surrender their certificates to the transfer agent in exchange for new certificates reflecting the reverse split, this step is NOT required in order to negotiate shares represented by a pre-reverse split certificate. When any pre-reverse split certificate is sent to Phlo's transfer agent for re-registration, the transfer agent automatically re-issues the shares on a post-reverse split basis using certificates bearing the new CUSIP.
Phlo is advised that a number of brokers and clearing firms have submitted all pre-reverse split certificates in their vaults to Phlo's transfer agent in exchange for post-reverse split certificates. However, this step is not required. Shareholders who encounter any difficulty with this process should have their broker contact Phlo directly.
The Company completed its 1-for-100 reverse stock split process on February 5, 2008. On that date, by operation of law and without any action by any person, certificates representing shares of Phlo common stock automatically represented 1/100th of the number of shares set forth on such certificates.
Nasdaq began reflecting the reverse split in the quotation of the price of the Company's common stock in the public market beginning on or about March 19 and assigned the Company's new trading symbol of PHCP. Additionally, the Company acquired a new CUSIP for its post-reverse split certificates. This is largely a "bookkeeping" measure to indicate whether the certificate represents a pre or post reverse split number of shares.
Phlo is a biotechnology company and a manufacturer and marketer of products (primarily liquids) containing patented and patent-pending biotechnologies. Phlo is focusing its technology generation and acquisition efforts on those technologies related to enhancing cognition and personal performance, reducing the effects of aging, and preventing or ameliorating cancer.
Certain statements made herein that are not historical constitute "forward-looking" statements within the meaning of the Private Litigation Reform Act of 1995 and may contain words such as "anticipate," "believe," "expect," "future," "may," "will," "should," "plan," "projected," "intend," and similar expressions to identify such forward-looking statements. Such statements are based on a number of assumptions and on information and estimates supplied to Phlo Corporation by sources currently available to it. Such assumptions and estimates are subject to uncertainties, contingencies, and other factors, many of which are beyond Phlo Corporation's control. Actual results may differ materially from the statements set forth above.
SOURCE Phlo Corporation