DENVER--(BUSINESS WIRE)--Command Center, Inc. (OTCQB: CCNI), a national provider of on-demand and temporary staffing solutions, is announcing a 1-for-12 reverse split of its common and preferred stock, effective as of the close of business tomorrow, December 7, 2017.
Command Center’s Articles of Amendment have been filed with the State of Washington, and FINRA approval was obtained. When the market opens on December 8th, the company’s common stock will continue to trade on the OTCQB, but on a split-adjusted basis.
On November 11, 2017, Command Center’s board of directors approved the reverse stock split in order to bring the company’s share price to levels that may attract and allow a larger pool of investors to invest in the company. The reverse split is also an important step in the company’s near-term plan to list its stock on the Nasdaq Capital Market.
“We are very excited to announce this reverse stock split,” said Command Center’s president and CEO, Bubba Sandford. “With the company consistently generating positive financial and operational performance, we believe we have good momentum and a good story here at Command Center. The reverse split will allow us to get that story in front of more investors who will see the value in our stock and our company.”
As a result of the reverse stock split, every 12 shares of the company’s common stock will be converted into one share of common stock, reducing the number of issued and outstanding shares from approximately 60.6 million to about 5.1 million. In a similar manner, the number of authorized shares will be reduced from 100 million to 8,333,333. The number of authorized shares of preferred stock will be reduced from 5 million to 416,666. There are no shares of preferred stock issued or outstanding. The number of shares issuable upon vesting or exercise of equity awards such as stock options will also be proportionally adjusted.
No fractional shares will be issued. Stockholders who otherwise would be entitled to receive a fractional share because they hold a number of pre-reverse shares of common stock not evenly divisible by 12, will receive a cash payment from the company for the fractional post-split share. The amount paid for a fractional share will be equal to the product obtained by multiplying (a) the closing price per share of the common stock as reported on the OTC Markets as of December 7, 2017, by (b) the fraction of one share owned by the stockholder, and (c) 12, the ratio of the reverse stock split.
The new CUSIP number for the common stock following the reverse stock split is 200497204. In order to designate the post-split shares, the letter "D" will be attached to the end of the company’s ticker symbol for approximately 20 days after the reverse split becomes effective.
Stockholders holding all of their shares of common stock in book-entry form or in brokerage accounts do not need to take any action in connection with the reverse stock split. For those stockholders holding physical stock certificates, the company’s transfer agent will send instructions for the surrender of such stockholders’ current certificates in exchange for a statement of holding. When such stockholders submit their certificates representing pre-split shares of common stock, their post-split shares will be held electronically in direct registration book entry account. This means that, instead of receiving a new stock certificate, these stockholders will receive a statement of holding that indicates the number of post-split shares they own. The company will no longer issue physical stock certificates unless a stockholder makes a specific request for a share certificate representing the stockholder’s post-split ownership interest.
About Command Center
Command Center provides flexible on-demand employment solutions to businesses in the United States, primarily in the areas of light industrial, hospitality and event services. Through 66 field offices, the company provides employment annually for approximately 34,000 field team members working for over 3,200 clients. For more information about Command Center, go to commandonline.com.
Important Cautions Regarding Forward-Looking Statements
This news release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are other than statements of historical facts. These statements are subject to uncertainties and risks, including, but not limited to, national, regional and local economic conditions, the availability of workers’ compensation insurance coverage, the availability of capital and suitable financing for the company's activities, the ability to attract, develop and retain qualified store managers and other personnel, product and service demand and acceptance, changes in technology, the impact of competition and pricing, government regulation, and other risks set forth in our most recent reports on Forms 10-K and 10-Q filed with the Securities and Exchange Commission, copies of which are available on our website at www.commandonline.com and the SEC website at www.sec.gov. All such forward-looking statements, whether written or oral, and whether made by or on behalf of the company, are expressly qualified by these cautionary statements and any other cautionary statements which may accompany the forward-looking statements. In addition, the company disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date hereof.