SAN FRANCISCO, Oct 26, 2005 /PRNewswire-FirstCall via COMTEX News Network/ -- LookSmart (Nasdaq: LOOK; ASX: LOK), an online media and technology company specializing in vertical search, announced that today its stockholders approved a reverse stock split of all outstanding shares of common stock, as recommended by the Company's Board of Directors, and that following the approval the Company's Board of Directors selected the split ratio to be 1-for-5. The Company has filed an amendment to its Certificate of Incorporation effecting the reverse split as of 5:00 p.m. Eastern Time on October 26, 2005. It is anticipated that the common stock shares will begin trading on the Nasdaq National Market on a post-split basis effective at the beginning of trading on October 27, 2005. A letter "D" will be appended to LookSmart's trading symbol for a period of 20 trading days to alert the trading community of the reverse split.
"We appreciate our stockholders' decision to give the board the authority to effect the proposed reverse stock split," said David B. Hills, president and chief executive officer of LookSmart. "We expect the reverse split authorized by today's vote to raise the per share trading price of LookSmart stock and allow us to comply with the Nasdaq National Market's listing maintenance standard regarding minimum bid prices as well as provide us with a more appropriate share count for the size of the company."
LookSmart stockholders will receive one share of the Company's common stock for each five shares of common stock held as of the effective date of the reverse split, with fractional common stock shares paid in cash. Upon the effective date, the number of shares of LookSmart common stock outstanding will be approximately 23 million.
Additionally, holders of CHESS Depositary Interests traded on the Australian Stock Exchange will be adjusted in the same ratio, with fractional interests rounded up to the next whole CDI. CDIs will continue to be convertible into the Company's common stock at a 1:1 ratio after the adjustment. It is anticipated that the CDIs will begin trading on ASX on a post-split basis effective at the beginning of trading on October 28, 2005.
LookSmart is an online media and technology company, which provides relevant content, advertising and technology solutions for consumers, advertisers and publishers. LookSmart's owned and operated vertical search sites are where customers look for what they need, and the sites and web tools offer essential search results with the ability to find, save and share content. In addition to owned and operated properties, LookSmart's distribution network includes syndicated publishers and search engine partners that maximize advertiser ROI. Distribution partners include Lycos, CNET, InfoSpace (Excite, MetaCrawler, Webcrawler), Cox Interactive, Apple's Sherlock, and U.C. Berkeley. LookSmart offers a customizable set of syndicated solutions for publishers to grow their advertiser relationships and audience. LookSmart is based in San Francisco, California. For more information on LookSmart, visit http://www.looksmart.com or call 415-348-7500.
NOTE: LookSmart is a registered trademark of LookSmart, Ltd. Investor Contact: Alex Wellins or Jennifer Jarman The Blueshirt Group 415-217-7722 firstname.lastname@example.org; email@example.com
SOURCE LookSmart, Ltd.
investors, Alex Wellins, +1-415-217-7722, or firstname.lastname@example.org, or Jennifer Jarman, +1-415-217-7722, or email@example.com, both of The Blueshirt Group, for LookSmart
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