Assisted Living Concepts, Inc. ("ALC")announced that its Board of Directors approved a reverse stock split of its Class A and Class B Common Stock at a ratio of 1 to 5, with the planned effective date of March 17, 2009. Accordingly, as of the effective date, each five shares of issued and outstanding Class A and Class B Common Stock will be converted into one share of Class A and Class B Common Stock, respectively. The reverse stock split will be effected by filing a Certificate of Change to ALC's Amended and Restated Articles of Incorporation with the Secretary of State of Nevada.
"We believe this reverse split will make our stock more attractive to a broader range of institutional and other investors as well as reduce some of our costs," said Laurie Bebo, President and Chief Executive Officer. "Share price plays an important role in stocks that institutions are willing to consider for investment and stocks which may be used for margin purposes. ALC continues to have a strong balance sheet, good cash flow, and consistent earnings. We realize there is an optimal share price range that enhances liquidity and draws a mix of institutional and individual investors. We expect that this reverse stock split will facilitate an appropriate balance."
"The current challenges in the economy have driven down the prices of many stocks, including ALC's," said Ms. Bebo. "ALC has good prospects to do well as the economy recovers and stock values return to historical norms. Our long-term business model remains unchanged and we believe we will significantly benefit from both an eventual economic recovery and the continuation of favorable demographic trends."
About Us
Assisted Living Concepts, Inc. and its subsidiaries operate 216 assisted living residences with capacity for over 9,000 residents in 20 states. ALC's assisted living facilities typically consist of 40 to 60 units and offer residents a supportive, home-like setting and assistance with the activities of daily living. ALC employs approximately 4,650 people.
Contact:
For further information, contact:
Assisted Living Concepts, Inc.
John Buono
Sr. Vice President, Chief Financial Officer and Treasurer
Phone: (262) 257-8999
Fax: (262) 251-7562
Email: Email Contact
Source: Assisted Living Concepts, Inc.
"We believe this reverse split will make our stock more attractive to a broader range of institutional and other investors as well as reduce some of our costs," said Laurie Bebo, President and Chief Executive Officer. "Share price plays an important role in stocks that institutions are willing to consider for investment and stocks which may be used for margin purposes. ALC continues to have a strong balance sheet, good cash flow, and consistent earnings. We realize there is an optimal share price range that enhances liquidity and draws a mix of institutional and individual investors. We expect that this reverse stock split will facilitate an appropriate balance."
"The current challenges in the economy have driven down the prices of many stocks, including ALC's," said Ms. Bebo. "ALC has good prospects to do well as the economy recovers and stock values return to historical norms. Our long-term business model remains unchanged and we believe we will significantly benefit from both an eventual economic recovery and the continuation of favorable demographic trends."
About Us
Assisted Living Concepts, Inc. and its subsidiaries operate 216 assisted living residences with capacity for over 9,000 residents in 20 states. ALC's assisted living facilities typically consist of 40 to 60 units and offer residents a supportive, home-like setting and assistance with the activities of daily living. ALC employs approximately 4,650 people.
Contact:
For further information, contact:
Assisted Living Concepts, Inc.
John Buono
Sr. Vice President, Chief Financial Officer and Treasurer
Phone: (262) 257-8999
Fax: (262) 251-7562
Email: Email Contact
Source: Assisted Living Concepts, Inc.
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