JDSU Reverse Splits
MILPITAS, Calif. -- JDSU (Nasdaq: JDSU - News; TSX: JDU - News) today announced that its Board of Directors has approved a 1-for-8 reverse split of its common stock, following approval by the Company's stockholders on December 1, 2005. The reverse stock split will be effective at 11:59 pm, Eastern Time, on Monday, October 16, 2006. JDSU's common stock will begin trading on the NASDAQ on a split adjusted basis when the market opens on Tuesday, October 17, 2006, under the temporary trading symbol "JDSUD". The trading symbol will revert to "JDSU" after approximately twenty trading days.
JDSU's reverse stock split is intended to enhance investors' visibility into the Company's profitability on a per share basis. The Company also believes that a higher share price could broaden JDSU's appeal to investors, in addition to reducing per share transaction fees and certain administrative costs.
The reverse split will reduce the number of shares of the Company's common stock outstanding from approximately 1.7 billion to approximately 211 million. Furthermore, proportional adjustments will be made to JDSU stock options and other equity incentive awards, equity compensation plans and convertible notes. The number of authorized shares of common stock will be reduced from 6 billion to 1 billion.
The exchangeable shares of JDS Uniphase Canada Ltd. ("JDU"), a subsidiary of the Company listed on the Toronto Stock Exchange, will effect a comparable reverse stock split at the same ratio of 1-for-8. No adjustment to the trading symbol "JDU" will be made for the exchangeable shares. The reverse split will reduce the number of exchangeable shares outstanding from approximately 51 million to approximately 6 million.
JDSU (Nasdaq: JDSU; Toronto: JDU)